Correlation Between TFI International and TradeUP Acquisition
Can any of the company-specific risk be diversified away by investing in both TFI International and TradeUP Acquisition 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 TradeUP Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TFI International and TradeUP Acquisition Corp, you can compare the effects of market volatilities on TFI International and TradeUP Acquisition 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 TradeUP Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of TFI International and TradeUP Acquisition.
Diversification Opportunities for TFI International and TradeUP Acquisition
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between TFI and TradeUP is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding TFI International and TradeUP Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TradeUP Acquisition 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 TradeUP Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TradeUP Acquisition Corp has no effect on the direction of TFI International i.e., TFI International and TradeUP Acquisition go up and down completely randomly.
Pair Corralation between TFI International and TradeUP Acquisition
Given the investment horizon of 90 days TFI International is expected to generate 75.86 times less return on investment than TradeUP Acquisition. But when comparing it to its historical volatility, TFI International is 18.33 times less risky than TradeUP Acquisition. It trades about 0.05 of its potential returns per unit of risk. TradeUP Acquisition Corp is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 4.06 in TradeUP Acquisition Corp on August 31, 2024 and sell it today you would earn a total of 9.94 from holding TradeUP Acquisition Corp or generate 244.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 11.95% |
| Values | Daily Returns |
TFI International vs. TradeUP Acquisition Corp
Performance |
| Timeline |
| TFI International |
| TradeUP Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
TFI International and TradeUP Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TFI International and TradeUP Acquisition
The main advantage of trading using opposite TFI International and TradeUP Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TFI International position performs unexpectedly, TradeUP Acquisition 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 TradeUP Acquisition will offset losses from the drop in TradeUP Acquisition's long position.| TFI International vs. Old Dominion Freight | TFI International vs. ArcBest Corp | TFI International vs. Marten Transport | TFI International vs. Werner Enterprises |
| TradeUP Acquisition vs. Century Aluminum | TradeUP Acquisition vs. EvoAir Holdings | TradeUP Acquisition vs. MI Homes | TradeUP Acquisition vs. Olympic Steel |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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