Correlation Between Global and TFI International
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By analyzing existing cross correlation between Global Marine 7 and TFI International, you can compare the effects of market volatilities on Global and TFI International 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 Global with a short position of TFI International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global and TFI International.
Diversification Opportunities for Global and TFI International
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Global and TFI is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Global Marine 7 and TFI International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TFI International and Global 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 Global Marine 7 are associated (or correlated) with TFI International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TFI International has no effect on the direction of Global i.e., Global and TFI International go up and down completely randomly.
Pair Corralation between Global and TFI International
Assuming the 90 days trading horizon Global Marine 7 is expected to under-perform the TFI International. But the bond apears to be less risky and, when comparing its historical volatility, Global Marine 7 is 1.89 times less risky than TFI International. The bond trades about -0.16 of its potential returns per unit of risk. The TFI International is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 13,429 in TFI International on September 3, 2024 and sell it today you would earn a total of 1,739 from holding TFI International or generate 12.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.0% |
| Values | Daily Returns |
Global Marine 7 vs. TFI International
Performance |
| Timeline |
| Global Marine 7 |
| TFI International |
Global and TFI International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global and TFI International
The main advantage of trading using opposite Global and TFI International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global position performs unexpectedly, TFI International 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 TFI International will offset losses from the drop in TFI International's long position.| Global vs. TFI International | Global vs. SBM Offshore NV | Global vs. BW Offshore Limited | Global vs. Verra Mobility Corp |
| 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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