Correlation Between TNEMAK and TFI International
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By analyzing existing cross correlation between TNEMAK 3625 28 JUN 31 and TFI International, you can compare the effects of market volatilities on TNEMAK 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 TNEMAK with a short position of TFI International. Check out your portfolio center. Please also check ongoing floating volatility patterns of TNEMAK and TFI International.
Diversification Opportunities for TNEMAK and TFI International
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TNEMAK and TFI is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding TNEMAK 3625 28 JUN 31 and TFI International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TFI International and TNEMAK 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 TNEMAK 3625 28 JUN 31 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 TNEMAK i.e., TNEMAK and TFI International go up and down completely randomly.
Pair Corralation between TNEMAK and TFI International
Assuming the 90 days trading horizon TNEMAK 3625 28 JUN 31 is expected to under-perform the TFI International. But the bond apears to be less risky and, when comparing its historical volatility, TNEMAK 3625 28 JUN 31 is 1.94 times less risky than TFI International. The bond trades about -0.12 of its potential returns per unit of risk. The TFI International is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 14,252 in TFI International on September 12, 2024 and sell it today you would earn a total of 1,190 from holding TFI International or generate 8.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 34.38% |
| Values | Daily Returns |
TNEMAK 3625 28 JUN 31 vs. TFI International
Performance |
| Timeline |
| TNEMAK 3625 28 |
| TFI International |
TNEMAK and TFI International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TNEMAK and TFI International
The main advantage of trading using opposite TNEMAK and TFI International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TNEMAK 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.The idea behind TNEMAK 3625 28 JUN 31 and TFI International pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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