Correlation Between TFI International and Procter Gamble
Can any of the company-specific risk be diversified away by investing in both TFI International and Procter Gamble 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 Procter Gamble into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TFI International and Procter Gamble, you can compare the effects of market volatilities on TFI International and Procter Gamble 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 Procter Gamble. Check out your portfolio center. Please also check ongoing floating volatility patterns of TFI International and Procter Gamble.
Diversification Opportunities for TFI International and Procter Gamble
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between TFI and Procter is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding TFI International and Procter Gamble in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Procter Gamble 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 Procter Gamble. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Procter Gamble has no effect on the direction of TFI International i.e., TFI International and Procter Gamble go up and down completely randomly.
Pair Corralation between TFI International and Procter Gamble
Given the investment horizon of 90 days TFI International is expected to under-perform the Procter Gamble. In addition to that, TFI International is 3.31 times more volatile than Procter Gamble. It trades about -0.39 of its total potential returns per unit of risk. Procter Gamble is currently generating about 0.04 per unit of volatility. If you would invest 16,966 in Procter Gamble on November 28, 2024 and sell it today you would earn a total of 164.00 from holding Procter Gamble or generate 0.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TFI International vs. Procter Gamble
Performance |
| Timeline |
| TFI International |
| Procter Gamble |
TFI International and Procter Gamble Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TFI International and Procter Gamble
The main advantage of trading using opposite TFI International and Procter Gamble positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TFI International position performs unexpectedly, Procter Gamble 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 Procter Gamble will offset losses from the drop in Procter Gamble's long position.| TFI International vs. Old Dominion Freight | TFI International vs. ArcBest Corp | TFI International vs. Marten Transport | TFI International vs. Werner Enterprises |
| Procter Gamble vs. The Clorox | Procter Gamble vs. Colgate Palmolive | Procter Gamble vs. Unilever PLC ADR | Procter Gamble vs. Church Dwight |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |