Correlation Between TFI International and Papaya Growth
Can any of the company-specific risk be diversified away by investing in both TFI International and Papaya Growth 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 Papaya Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TFI International and Papaya Growth Opportunity, you can compare the effects of market volatilities on TFI International and Papaya Growth 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 Papaya Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of TFI International and Papaya Growth.
Diversification Opportunities for TFI International and Papaya Growth
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between TFI and Papaya is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding TFI International and Papaya Growth Opportunity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Papaya Growth Opportunity 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 Papaya Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Papaya Growth Opportunity has no effect on the direction of TFI International i.e., TFI International and Papaya Growth go up and down completely randomly.
Pair Corralation between TFI International and Papaya Growth
Given the investment horizon of 90 days TFI International is expected to generate 1.44 times more return on investment than Papaya Growth. However, TFI International is 1.44 times more volatile than Papaya Growth Opportunity. It trades about 0.06 of its potential returns per unit of risk. Papaya Growth Opportunity is currently generating about 0.01 per unit of risk. If you would invest 13,367 in TFI International on September 2, 2024 and sell it today you would earn a total of 1,801 from holding TFI International or generate 13.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TFI International vs. Papaya Growth Opportunity
Performance |
| Timeline |
| TFI International |
| Papaya Growth Opportunity |
TFI International and Papaya Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TFI International and Papaya Growth
The main advantage of trading using opposite TFI International and Papaya Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TFI International position performs unexpectedly, Papaya Growth 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 Papaya Growth will offset losses from the drop in Papaya Growth's long position.| TFI International vs. Old Dominion Freight | TFI International vs. ArcBest Corp | TFI International vs. Marten Transport | TFI International vs. Werner Enterprises |
| Papaya Growth vs. Life Time Group | Papaya Growth vs. Acco Brands | Papaya Growth vs. Afya | Papaya Growth vs. Bright Scholar Education |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |