Correlation Between TFI International and Eureka Acquisition
Can any of the company-specific risk be diversified away by investing in both TFI International and Eureka Acquisition at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining TFI International and Eureka Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TFI International and Eureka Acquisition Corp, you can compare the effects of market volatilities on TFI International and Eureka Acquisition and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in TFI International with a short position of Eureka Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of TFI International and Eureka Acquisition.
Diversification Opportunities for TFI International and Eureka Acquisition
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between TFI and Eureka is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding TFI International and Eureka Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eureka Acquisition Corp and TFI International is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on TFI International are associated (or correlated) with Eureka Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eureka Acquisition Corp has no effect on the direction of TFI International i.e., TFI International and Eureka Acquisition go up and down completely randomly.
Pair Corralation between TFI International and Eureka Acquisition
Given the investment horizon of 90 days TFI International is expected to generate 140.76 times less return on investment than Eureka Acquisition. But when comparing it to its historical volatility, TFI International is 71.42 times less risky than Eureka Acquisition. It trades about 0.07 of its potential returns per unit of risk. Eureka Acquisition Corp is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Eureka Acquisition Corp on September 2, 2024 and sell it today you would earn a total of 1,012 from holding Eureka Acquisition Corp or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 15.59% |
| Values | Daily Returns |
TFI International vs. Eureka Acquisition Corp
Performance |
| Timeline |
| TFI International |
| Eureka Acquisition Corp |
TFI International and Eureka Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TFI International and Eureka Acquisition
The main advantage of trading using opposite TFI International and Eureka Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TFI International position performs unexpectedly, Eureka Acquisition can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Eureka Acquisition will offset losses from the drop in Eureka Acquisition's long position.| TFI International vs. Old Dominion Freight | TFI International vs. ArcBest Corp | TFI International vs. Marten Transport | TFI International vs. Werner Enterprises |
| Eureka Acquisition vs. Voyager Acquisition Corp | Eureka Acquisition vs. CO2 Energy Transition | Eureka Acquisition vs. Vine Hill Capital | Eureka Acquisition vs. DUET Acquisition Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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