Correlation Between Yellow Corp and TFI International
Can any of the company-specific risk be diversified away by investing in both Yellow Corp 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 Yellow Corp and TFI International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yellow Corp and TFI International, you can compare the effects of market volatilities on Yellow Corp 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 Yellow Corp with a short position of TFI International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yellow Corp and TFI International.
Diversification Opportunities for Yellow Corp and TFI International
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Yellow and TFI is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Yellow Corp and TFI International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TFI International and Yellow Corp 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 Yellow Corp 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 Yellow Corp i.e., Yellow Corp and TFI International go up and down completely randomly.
Pair Corralation between Yellow Corp and TFI International
If you would invest 11,687 in TFI International on August 26, 2024 and sell it today you would earn a total of 3,186 from holding TFI International or generate 27.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
Yellow Corp vs. TFI International
Performance |
| Timeline |
| Yellow Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| TFI International |
Yellow Corp and TFI International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yellow Corp and TFI International
The main advantage of trading using opposite Yellow Corp and TFI International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yellow Corp 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.| Yellow Corp vs. Saia Inc | Yellow Corp vs. Marten Transport | Yellow Corp vs. TFI International | Yellow Corp vs. Universal Logistics Holdings |
| TFI International vs. Old Dominion Freight | TFI International vs. ArcBest Corp | TFI International vs. Knight Transportation | TFI International vs. Universal Logistics Holdings |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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