Correlation Between TFI International and Ihuman
Can any of the company-specific risk be diversified away by investing in both TFI International and Ihuman 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 Ihuman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TFI International and Ihuman Inc, you can compare the effects of market volatilities on TFI International and Ihuman 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 Ihuman. Check out your portfolio center. Please also check ongoing floating volatility patterns of TFI International and Ihuman.
Diversification Opportunities for TFI International and Ihuman
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between TFI and Ihuman is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding TFI International and Ihuman Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihuman Inc 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 Ihuman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ihuman Inc has no effect on the direction of TFI International i.e., TFI International and Ihuman go up and down completely randomly.
Pair Corralation between TFI International and Ihuman
Given the investment horizon of 90 days TFI International is expected to generate 2.09 times less return on investment than Ihuman. But when comparing it to its historical volatility, TFI International is 2.04 times less risky than Ihuman. It trades about 0.04 of its potential returns per unit of risk. Ihuman Inc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 154.00 in Ihuman Inc on September 8, 2024 and sell it today you would earn a total of 14.00 from holding Ihuman Inc or generate 9.09% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
TFI International vs. Ihuman Inc
Performance |
Timeline |
TFI International |
Ihuman Inc |
TFI International and Ihuman Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with TFI International and Ihuman
The main advantage of trading using opposite TFI International and Ihuman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TFI International position performs unexpectedly, Ihuman 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 Ihuman will offset losses from the drop in Ihuman's long position.TFI International vs. Old Dominion Freight | TFI International vs. ArcBest Corp | TFI International vs. Marten Transport | TFI International vs. Werner Enterprises |
Ihuman vs. Boqii Holding Limited | Ihuman vs. Lixiang Education Holding | Ihuman vs. Huize Holding | Ihuman vs. Kuke Music Holding |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data |