Correlation Between TFI International and Weyco
Can any of the company-specific risk be diversified away by investing in both TFI International and Weyco 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 Weyco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TFI International and Weyco Group, you can compare the effects of market volatilities on TFI International and Weyco 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 Weyco. Check out your portfolio center. Please also check ongoing floating volatility patterns of TFI International and Weyco.
Diversification Opportunities for TFI International and Weyco
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TFI and Weyco is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding TFI International and Weyco Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weyco Group 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 Weyco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weyco Group has no effect on the direction of TFI International i.e., TFI International and Weyco go up and down completely randomly.
Pair Corralation between TFI International and Weyco
Given the investment horizon of 90 days TFI International is expected to generate 1.1 times less return on investment than Weyco. But when comparing it to its historical volatility, TFI International is 1.16 times less risky than Weyco. It trades about 0.05 of its potential returns per unit of risk. Weyco Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,422 in Weyco Group on September 3, 2024 and sell it today you would earn a total of 1,149 from holding Weyco Group or generate 47.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TFI International vs. Weyco Group
Performance |
| Timeline |
| TFI International |
| Weyco Group |
TFI International and Weyco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TFI International and Weyco
The main advantage of trading using opposite TFI International and Weyco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TFI International position performs unexpectedly, Weyco 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 Weyco will offset losses from the drop in Weyco'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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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