Correlation Between TFI International and International Paper
Can any of the company-specific risk be diversified away by investing in both TFI International and International Paper 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 International Paper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TFI International and International Paper, you can compare the effects of market volatilities on TFI International and International Paper 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 International Paper. Check out your portfolio center. Please also check ongoing floating volatility patterns of TFI International and International Paper.
Diversification Opportunities for TFI International and International Paper
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TFI and International is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TFI International and International Paper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Paper 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 International Paper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Paper has no effect on the direction of TFI International i.e., TFI International and International Paper go up and down completely randomly.
Pair Corralation between TFI International and International Paper
If you would invest (100.00) in International Paper on November 28, 2024 and sell it today you would earn a total of 100.00 from holding International Paper or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
TFI International vs. International Paper
Performance |
| Timeline |
| TFI International |
| International Paper |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
TFI International and International Paper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TFI International and International Paper
The main advantage of trading using opposite TFI International and International Paper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TFI International position performs unexpectedly, International Paper 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 International Paper will offset losses from the drop in International Paper's long position.| TFI International vs. Old Dominion Freight | TFI International vs. ArcBest Corp | TFI International vs. Marten Transport | TFI International vs. Werner Enterprises |
| International Paper vs. El Pollo Loco | International Paper vs. US Global Investors | International Paper vs. Gladstone Investment | International Paper vs. Nathans Famous |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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