Correlation Between TFI International and Caravelle International
Can any of the company-specific risk be diversified away by investing in both TFI International and Caravelle International 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 Caravelle International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TFI International and Caravelle International Group, you can compare the effects of market volatilities on TFI International and Caravelle International 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 Caravelle International. Check out your portfolio center. Please also check ongoing floating volatility patterns of TFI International and Caravelle International.
Diversification Opportunities for TFI International and Caravelle International
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between TFI and Caravelle is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding TFI International and Caravelle International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caravelle International 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 Caravelle International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caravelle International has no effect on the direction of TFI International i.e., TFI International and Caravelle International go up and down completely randomly.
Pair Corralation between TFI International and Caravelle International
Given the investment horizon of 90 days TFI International is expected to under-perform the Caravelle International. But the stock apears to be less risky and, when comparing its historical volatility, TFI International is 4.09 times less risky than Caravelle International. The stock trades about -0.06 of its potential returns per unit of risk. The Caravelle International Group is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 297.00 in Caravelle International Group on November 9, 2024 and sell it today you would earn a total of 24.00 from holding Caravelle International Group or generate 8.08% 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. Caravelle International Group
Performance |
| Timeline |
| TFI International |
| Caravelle International |
TFI International and Caravelle International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TFI International and Caravelle International
The main advantage of trading using opposite TFI International and Caravelle International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TFI International position performs unexpectedly, Caravelle International 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 Caravelle International will offset losses from the drop in Caravelle International's long position.| TFI International vs. Old Dominion Freight | TFI International vs. ArcBest Corp | TFI International vs. Marten Transport | TFI International vs. Werner Enterprises |
| Caravelle International vs. Triumph Apparel | Caravelle International vs. Willis Lease Finance | Caravelle International vs. GATX Corporation | Caravelle International vs. Skechers USA |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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