Correlation Between TFI International and Hudson Technologies
Can any of the company-specific risk be diversified away by investing in both TFI International and Hudson Technologies 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 Hudson Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TFI International and Hudson Technologies, you can compare the effects of market volatilities on TFI International and Hudson Technologies 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 Hudson Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of TFI International and Hudson Technologies.
Diversification Opportunities for TFI International and Hudson Technologies
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TFI and Hudson is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding TFI International and Hudson Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hudson Technologies 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 Hudson Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hudson Technologies has no effect on the direction of TFI International i.e., TFI International and Hudson Technologies go up and down completely randomly.
Pair Corralation between TFI International and Hudson Technologies
Given the investment horizon of 90 days TFI International is expected to generate 0.63 times more return on investment than Hudson Technologies. However, TFI International is 1.59 times less risky than Hudson Technologies. It trades about 0.05 of its potential returns per unit of risk. Hudson Technologies is currently generating about -0.03 per unit of risk. If you would invest 10,444 in TFI International on September 3, 2024 and sell it today you would earn a total of 4,724 from holding TFI International or generate 45.23% 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. Hudson Technologies
Performance |
| Timeline |
| TFI International |
| Hudson Technologies |
TFI International and Hudson Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TFI International and Hudson Technologies
The main advantage of trading using opposite TFI International and Hudson Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TFI International position performs unexpectedly, Hudson Technologies 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 Hudson Technologies will offset losses from the drop in Hudson Technologies' long position.| TFI International vs. Old Dominion Freight | TFI International vs. ArcBest Corp | TFI International vs. Marten Transport | TFI International vs. Werner Enterprises |
| Hudson Technologies vs. Sensient Technologies | Hudson Technologies vs. Innospec | Hudson Technologies vs. H B Fuller | Hudson Technologies vs. Quaker Chemical |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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