Correlation Between Fiera Capital and TFI International
Can any of the company-specific risk be diversified away by investing in both Fiera Capital 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 Fiera Capital and TFI International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fiera Capital and TFI International, you can compare the effects of market volatilities on Fiera Capital 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 Fiera Capital with a short position of TFI International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fiera Capital and TFI International.
Diversification Opportunities for Fiera Capital and TFI International
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fiera and TFI is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Fiera Capital and TFI International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TFI International and Fiera Capital 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 Fiera Capital 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 Fiera Capital i.e., Fiera Capital and TFI International go up and down completely randomly.
Pair Corralation between Fiera Capital and TFI International
Assuming the 90 days trading horizon Fiera Capital is expected to generate 0.7 times more return on investment than TFI International. However, Fiera Capital is 1.44 times less risky than TFI International. It trades about -0.23 of its potential returns per unit of risk. TFI International is currently generating about -0.26 per unit of risk. If you would invest 859.00 in Fiera Capital on December 29, 2024 and sell it today you would lose (244.00) from holding Fiera Capital or give up 28.41% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Fiera Capital vs. TFI International
Performance |
Timeline |
Fiera Capital |
TFI International |
Fiera Capital and TFI International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fiera Capital and TFI International
The main advantage of trading using opposite Fiera Capital and TFI International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fiera Capital 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.Fiera Capital vs. Timbercreek Financial Corp | Fiera Capital vs. Alaris Equity Partners | Fiera Capital vs. Slate Grocery REIT | Fiera Capital vs. NorthWest Healthcare Properties |
TFI International vs. WSP Global | TFI International vs. Waste Connections | TFI International vs. Open Text Corp | TFI International vs. Cargojet |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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