Correlation Between TFI International and Nextplat Corp
Can any of the company-specific risk be diversified away by investing in both TFI International and Nextplat Corp 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 Nextplat Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TFI International and Nextplat Corp, you can compare the effects of market volatilities on TFI International and Nextplat Corp 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 Nextplat Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of TFI International and Nextplat Corp.
Diversification Opportunities for TFI International and Nextplat Corp
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between TFI and Nextplat is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding TFI International and Nextplat Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nextplat Corp 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 Nextplat Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nextplat Corp has no effect on the direction of TFI International i.e., TFI International and Nextplat Corp go up and down completely randomly.
Pair Corralation between TFI International and Nextplat Corp
Given the investment horizon of 90 days TFI International is expected to under-perform the Nextplat Corp. In addition to that, TFI International is 1.37 times more volatile than Nextplat Corp. It trades about -0.38 of its total potential returns per unit of risk. Nextplat Corp is currently generating about -0.12 per unit of volatility. If you would invest 107.00 in Nextplat Corp on November 29, 2024 and sell it today you would lose (10.00) from holding Nextplat Corp or give up 9.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TFI International vs. Nextplat Corp
Performance |
| Timeline |
| TFI International |
| Nextplat Corp |
TFI International and Nextplat Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TFI International and Nextplat Corp
The main advantage of trading using opposite TFI International and Nextplat Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TFI International position performs unexpectedly, Nextplat Corp 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 Nextplat Corp will offset losses from the drop in Nextplat Corp's long position.| TFI International vs. Old Dominion Freight | TFI International vs. ArcBest Corp | TFI International vs. Marten Transport | TFI International vs. Werner Enterprises |
| Nextplat Corp vs. RenoWorks Software | Nextplat Corp vs. LifeSpeak | Nextplat Corp vs. 01 Communique Laboratory | Nextplat Corp vs. Where Food Comes |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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