Correlation Between TFI International and NEWFIELD
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By analyzing existing cross correlation between TFI International and NEWFIELD EXPL 5375, you can compare the effects of market volatilities on TFI International and NEWFIELD 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 NEWFIELD. Check out your portfolio center. Please also check ongoing floating volatility patterns of TFI International and NEWFIELD.
Diversification Opportunities for TFI International and NEWFIELD
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between TFI and NEWFIELD is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding TFI International and NEWFIELD EXPL 5375 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEWFIELD EXPL 5375 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 NEWFIELD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEWFIELD EXPL 5375 has no effect on the direction of TFI International i.e., TFI International and NEWFIELD go up and down completely randomly.
Pair Corralation between TFI International and NEWFIELD
Given the investment horizon of 90 days TFI International is expected to generate 7.56 times more return on investment than NEWFIELD. However, TFI International is 7.56 times more volatile than NEWFIELD EXPL 5375. It trades about 0.07 of its potential returns per unit of risk. NEWFIELD EXPL 5375 is currently generating about 0.03 per unit of risk. If you would invest 11,435 in TFI International on September 4, 2024 and sell it today you would earn a total of 3,658 from holding TFI International or generate 31.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.93% |
| Values | Daily Returns |
TFI International vs. NEWFIELD EXPL 5375
Performance |
| Timeline |
| TFI International |
| NEWFIELD EXPL 5375 |
TFI International and NEWFIELD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TFI International and NEWFIELD
The main advantage of trading using opposite TFI International and NEWFIELD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TFI International position performs unexpectedly, NEWFIELD 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 NEWFIELD will offset losses from the drop in NEWFIELD's long position.| TFI International vs. Old Dominion Freight | TFI International vs. ArcBest Corp | TFI International vs. Marten Transport | TFI International vs. Werner Enterprises |
| NEWFIELD vs. The Travelers Companies | NEWFIELD vs. GE Aerospace | NEWFIELD vs. Walmart | NEWFIELD vs. Pfizer Inc |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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