Correlation Between TFI International and INTNED

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

By analyzing existing cross correlation between TFI International and INTNED 547761 01 APR 27, you can compare the effects of market volatilities on TFI International and INTNED 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 TFI International with a short position of INTNED. Check out your portfolio center. Please also check ongoing floating volatility patterns of TFI International and INTNED.

Diversification Opportunities for TFI International and INTNED

-0.13

Correlation Coefficient

TFI International  INTNED

Good diversification

The 3 months correlation between TFI and INTNED is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding TFI International and INTNED 547761 01 APR 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTNED 547761 01 and TFI International 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 TFI International are associated (or correlated) with INTNED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTNED 547761 01 has no effect on the direction of TFI International i.e., TFI International and INTNED go up and down completely randomly.

Pair Corralation between TFI International and INTNED

Given the investment horizon of 90 days TFI International is expected to generate 12.93 times more return on investment than INTNED. However, TFI International is 12.93 times more volatile than INTNED 547761 01 APR 27. It trades about 0.05 of its potential returns per unit of risk. INTNED 547761 01 APR 27 is currently generating about -0.08 per unit of risk. If you would invest  14,432  in TFI International on September 14, 2024 and sell it today you would earn a total of  820.00  from holding TFI International or generate 5.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	34.92%
Values	Daily Returns

TFI International  vs.  INTNED 547761 01 APR 27

TFI International

Risk-Adjusted Performance

4 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in TFI International are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly conflicting forward indicators, TFI International may actually be approaching a critical reversion point that can send shares even higher in January 2025.

INTNED 547761 01

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days INTNED 547761 01 APR 27 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, INTNED is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with TFI International and INTNED

The main advantage of trading using opposite TFI International and INTNED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TFI International position performs unexpectedly, INTNED 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 INTNED will offset losses from the drop in INTNED's long position.

The idea behind TFI International and INTNED 547761 01 APR 27 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.