Correlation Between FlyExclusive, and TFI International

Can any of the company-specific risk be diversified away by investing in both FlyExclusive, 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 FlyExclusive, and TFI International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between flyExclusive, and TFI International, you can compare the effects of market volatilities on FlyExclusive, 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 FlyExclusive, with a short position of TFI International. Check out your portfolio center. Please also check ongoing floating volatility patterns of FlyExclusive, and TFI International.

Diversification Opportunities for FlyExclusive, and TFI International

-0.44

Correlation Coefficient

FlyExclusive,  TFI International

Very good diversification

The 3 months correlation between FlyExclusive, and TFI is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding flyExclusive, and TFI International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TFI International and FlyExclusive, 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 flyExclusive, 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 FlyExclusive, i.e., FlyExclusive, and TFI International go up and down completely randomly.

Pair Corralation between FlyExclusive, and TFI International

Given the investment horizon of 90 days flyExclusive, is expected to under-perform the TFI International. In addition to that, FlyExclusive, is 3.32 times more volatile than TFI International. It trades about -0.01 of its total potential returns per unit of risk. TFI International is currently generating about 0.04 per unit of volatility. If you would invest  10,333  in TFI International on September 29, 2024 and sell it today you would earn a total of  3,438  from holding TFI International or generate 33.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	86.29%
Values	Daily Returns

flyExclusive,  vs.  TFI International

flyExclusive,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days flyExclusive, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, FlyExclusive, is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

TFI International

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in TFI International are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, TFI International is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with FlyExclusive, and TFI International

The main advantage of trading using opposite FlyExclusive, and TFI International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FlyExclusive, 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 flyExclusive, 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.

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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.