Correlation Between TFI International and CINTAS
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By analyzing existing cross correlation between TFI International and CINTAS P NO, you can compare the effects of market volatilities on TFI International and CINTAS 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 CINTAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of TFI International and CINTAS.
Diversification Opportunities for TFI International and CINTAS
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between TFI and CINTAS is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding TFI International and CINTAS P NO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CINTAS P NO 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 CINTAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CINTAS P NO has no effect on the direction of TFI International i.e., TFI International and CINTAS go up and down completely randomly.
Pair Corralation between TFI International and CINTAS
Given the investment horizon of 90 days TFI International is expected to generate 2.22 times more return on investment than CINTAS. However, TFI International is 2.22 times more volatile than CINTAS P NO. It trades about 0.23 of its potential returns per unit of risk. CINTAS P NO is currently generating about 0.17 per unit of risk. If you would invest 13,429 in TFI International on September 4, 2024 and sell it today you would earn a total of 1,664 from holding TFI International or generate 12.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 33.33% |
| Values | Daily Returns |
TFI International vs. CINTAS P NO
Performance |
| Timeline |
| TFI International |
| CINTAS P NO |
TFI International and CINTAS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TFI International and CINTAS
The main advantage of trading using opposite TFI International and CINTAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TFI International position performs unexpectedly, CINTAS 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 CINTAS will offset losses from the drop in CINTAS's long position.| TFI International vs. Old Dominion Freight | TFI International vs. ArcBest Corp | TFI International vs. Marten Transport | TFI International vs. Werner Enterprises |
| CINTAS vs. Park Hotels Resorts | CINTAS vs. Ryman Hospitality Properties | CINTAS vs. TFI International | CINTAS vs. Lindblad Expeditions 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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