Correlation Between TFI International and Tianjin Capital
Can any of the company-specific risk be diversified away by investing in both TFI International and Tianjin Capital 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 Tianjin Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TFI International and Tianjin Capital Environmental, you can compare the effects of market volatilities on TFI International and Tianjin Capital 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 Tianjin Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of TFI International and Tianjin Capital.
Diversification Opportunities for TFI International and Tianjin Capital
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between TFI and Tianjin is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding TFI International and Tianjin Capital Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Capital Envi 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 Tianjin Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Capital Envi has no effect on the direction of TFI International i.e., TFI International and Tianjin Capital go up and down completely randomly.
Pair Corralation between TFI International and Tianjin Capital
If you would invest 13,448 in TFI International on August 31, 2024 and sell it today you would earn a total of 1,289 from holding TFI International or generate 9.59% 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. Tianjin Capital Environmental
Performance |
| Timeline |
| TFI International |
| Tianjin Capital Envi |
TFI International and Tianjin Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TFI International and Tianjin Capital
The main advantage of trading using opposite TFI International and Tianjin Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TFI International position performs unexpectedly, Tianjin Capital 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 Tianjin Capital will offset losses from the drop in Tianjin Capital's long position.| TFI International vs. Old Dominion Freight | TFI International vs. ArcBest Corp | TFI International vs. Marten Transport | TFI International vs. Werner Enterprises |
| Tianjin Capital vs. Legacy Education | Tianjin Capital vs. Apple Inc | Tianjin Capital vs. NVIDIA | Tianjin Capital vs. Microsoft |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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