Correlation Between TFI International and Genus Plc
Can any of the company-specific risk be diversified away by investing in both TFI International and Genus Plc 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 Genus Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TFI International and Genus plc, you can compare the effects of market volatilities on TFI International and Genus Plc 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 Genus Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of TFI International and Genus Plc.
Diversification Opportunities for TFI International and Genus Plc
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TFI and Genus is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding TFI International and Genus plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genus plc 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 Genus Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genus plc has no effect on the direction of TFI International i.e., TFI International and Genus Plc go up and down completely randomly.
Pair Corralation between TFI International and Genus Plc
Given the investment horizon of 90 days TFI International is expected to generate 1.13 times more return on investment than Genus Plc. However, TFI International is 1.13 times more volatile than Genus plc. It trades about 0.05 of its potential returns per unit of risk. Genus plc is currently generating about -0.05 per unit of risk. If you would invest 10,332 in TFI International on September 5, 2024 and sell it today you would earn a total of 4,761 from holding TFI International or generate 46.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TFI International vs. Genus plc
Performance |
| Timeline |
| TFI International |
| Genus plc |
TFI International and Genus Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TFI International and Genus Plc
The main advantage of trading using opposite TFI International and Genus Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TFI International position performs unexpectedly, Genus Plc 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 Genus Plc will offset losses from the drop in Genus Plc's long position.| TFI International vs. Old Dominion Freight | TFI International vs. ArcBest Corp | TFI International vs. Marten Transport | TFI International vs. Werner Enterprises |
| Genus Plc vs. Cardinal Health | Genus Plc vs. Verra Mobility Corp | Genus Plc vs. Old Dominion Freight | Genus Plc vs. TFI International |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |