Correlation Between Weyco and TFI International
Can any of the company-specific risk be diversified away by investing in both Weyco and TFI International 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 Weyco and TFI International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Weyco Group and TFI International, you can compare the effects of market volatilities on Weyco 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 Weyco with a short position of TFI International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weyco and TFI International.
Diversification Opportunities for Weyco and TFI International
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Weyco and TFI is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Weyco Group and TFI International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TFI International and Weyco 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 Weyco Group 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 Weyco i.e., Weyco and TFI International go up and down completely randomly.
Pair Corralation between Weyco and TFI International
Given the investment horizon of 90 days Weyco Group is expected to generate 0.41 times more return on investment than TFI International. However, Weyco Group is 2.43 times less risky than TFI International. It trades about -0.11 of its potential returns per unit of risk. TFI International is currently generating about -0.38 per unit of risk. If you would invest 3,656 in Weyco Group on December 1, 2024 and sell it today you would lose (178.00) from holding Weyco Group or give up 4.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weyco Group vs. TFI International
Performance |
| Timeline |
| Weyco Group |
| TFI International |
Weyco and TFI International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weyco and TFI International
The main advantage of trading using opposite Weyco and TFI International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weyco 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 Weyco Group 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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