Correlation Between TFI International and Newell
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By analyzing existing cross correlation between TFI International and Newell Brands 42, you can compare the effects of market volatilities on TFI International and Newell 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 Newell. Check out your portfolio center. Please also check ongoing floating volatility patterns of TFI International and Newell.
Diversification Opportunities for TFI International and Newell
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TFI and Newell is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding TFI International and Newell Brands 42 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newell Brands 42 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 Newell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newell Brands 42 has no effect on the direction of TFI International i.e., TFI International and Newell go up and down completely randomly.
Pair Corralation between TFI International and Newell
Given the investment horizon of 90 days TFI International is expected to generate 2.72 times more return on investment than Newell. However, TFI International is 2.72 times more volatile than Newell Brands 42. It trades about 0.07 of its potential returns per unit of risk. Newell Brands 42 is currently generating about -0.02 per unit of risk. If you would invest 11,655 in TFI International on September 12, 2024 and sell it today you would earn a total of 3,736 from holding TFI International or generate 32.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
TFI International vs. Newell Brands 42
Performance |
| Timeline |
| TFI International |
| Newell Brands 42 |
TFI International and Newell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TFI International and Newell
The main advantage of trading using opposite TFI International and Newell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TFI International position performs unexpectedly, Newell 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 Newell will offset losses from the drop in Newell's long position.| TFI International vs. Old Dominion Freight | TFI International vs. ArcBest Corp | TFI International vs. Marten Transport | TFI International vs. Werner Enterprises |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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