Correlation Between TFI International and Sweetgreen
Can any of the company-specific risk be diversified away by investing in both TFI International and Sweetgreen 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 Sweetgreen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TFI International and Sweetgreen, you can compare the effects of market volatilities on TFI International and Sweetgreen 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 Sweetgreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of TFI International and Sweetgreen.
Diversification Opportunities for TFI International and Sweetgreen
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between TFI and Sweetgreen is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding TFI International and Sweetgreen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sweetgreen 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 Sweetgreen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sweetgreen has no effect on the direction of TFI International i.e., TFI International and Sweetgreen go up and down completely randomly.
Pair Corralation between TFI International and Sweetgreen
Given the investment horizon of 90 days TFI International is expected to generate 1.44 times less return on investment than Sweetgreen. But when comparing it to its historical volatility, TFI International is 1.89 times less risky than Sweetgreen. It trades about 0.19 of its potential returns per unit of risk. Sweetgreen is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 3,883 in Sweetgreen on August 28, 2024 and sell it today you would earn a total of 514.00 from holding Sweetgreen or generate 13.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TFI International vs. Sweetgreen
Performance |
| Timeline |
| TFI International |
| Sweetgreen |
TFI International and Sweetgreen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TFI International and Sweetgreen
The main advantage of trading using opposite TFI International and Sweetgreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TFI International position performs unexpectedly, Sweetgreen 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 Sweetgreen will offset losses from the drop in Sweetgreen's long position.| TFI International vs. Old Dominion Freight | TFI International vs. ArcBest Corp | TFI International vs. Knight Transportation | TFI International vs. Universal Logistics Holdings |
| Sweetgreen vs. Cannae Holdings | Sweetgreen vs. Brinker International | Sweetgreen vs. Jack In The | Sweetgreen vs. Biglari Holdings |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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