Correlation Between Sonic Interfreight and Triple I

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

By analyzing existing cross correlation between Sonic Interfreight Public and Triple i Logistics, you can compare the effects of market volatilities on Sonic Interfreight and Triple I 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 Sonic Interfreight with a short position of Triple I. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sonic Interfreight and Triple I.

Diversification Opportunities for Sonic Interfreight and Triple I

-0.47

Correlation Coefficient

Sonic Interfreight  Triple I

Very good diversification

The 3 months correlation between Sonic and Triple is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Sonic Interfreight Public and Triple i Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triple i Logistics and Sonic Interfreight 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 Sonic Interfreight Public are associated (or correlated) with Triple I. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triple i Logistics has no effect on the direction of Sonic Interfreight i.e., Sonic Interfreight and Triple I go up and down completely randomly.

Pair Corralation between Sonic Interfreight and Triple I

Assuming the 90 days trading horizon Sonic Interfreight is expected to generate 220.49 times less return on investment than Triple I. But when comparing it to its historical volatility, Sonic Interfreight Public is 56.11 times less risky than Triple I. It trades about 0.02 of its potential returns per unit of risk. Triple i Logistics is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  680.00  in Triple i Logistics on September 23, 2024 and sell it today you would lose (165.00) from holding Triple i Logistics or give up 24.26% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Sonic Interfreight Public  vs.  Triple i Logistics

Sonic Interfreight Public

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Sonic Interfreight Public are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental drivers, Sonic Interfreight is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Triple i Logistics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Triple i Logistics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Sonic Interfreight and Triple I

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

The idea behind Sonic Interfreight Public and Triple i Logistics 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.