Correlation Between TFI International and Flagstar Bancorp
Can any of the company-specific risk be diversified away by investing in both TFI International and Flagstar Bancorp 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 Flagstar Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TFI International and Flagstar Bancorp, you can compare the effects of market volatilities on TFI International and Flagstar Bancorp 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 Flagstar Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of TFI International and Flagstar Bancorp.
Diversification Opportunities for TFI International and Flagstar Bancorp
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between TFI and Flagstar is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding TFI International and Flagstar Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flagstar Bancorp 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 Flagstar Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flagstar Bancorp has no effect on the direction of TFI International i.e., TFI International and Flagstar Bancorp go up and down completely randomly.
Pair Corralation between TFI International and Flagstar Bancorp
If you would invest 11,435 in TFI International on September 4, 2024 and sell it today you would earn a total of 3,658 from holding TFI International or generate 31.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
TFI International vs. Flagstar Bancorp
Performance |
| Timeline |
| TFI International |
| Flagstar Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
TFI International and Flagstar Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TFI International and Flagstar Bancorp
The main advantage of trading using opposite TFI International and Flagstar Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TFI International position performs unexpectedly, Flagstar Bancorp 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 Flagstar Bancorp will offset losses from the drop in Flagstar Bancorp's long position.| TFI International vs. Old Dominion Freight | TFI International vs. ArcBest Corp | TFI International vs. Marten Transport | TFI International vs. Werner Enterprises |
| Flagstar Bancorp vs. Hafnia Limited | Flagstar Bancorp vs. TFI International | Flagstar Bancorp vs. Lindblad Expeditions Holdings | Flagstar Bancorp vs. Summit Materials |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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