Correlation Between TFI International and Veea

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

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

Diversification Opportunities for TFI International and Veea

-0.7

Correlation Coefficient

TFI International  Veea

Excellent diversification

The 3 months correlation between TFI and Veea is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding TFI International and Veea Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veea 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 Veea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Veea Inc has no effect on the direction of TFI International i.e., TFI International and Veea go up and down completely randomly.

Pair Corralation between TFI International and Veea

Given the investment horizon of 90 days TFI International is expected to generate 0.1 times more return on investment than Veea. However, TFI International is 10.32 times less risky than Veea. It trades about 0.01 of its potential returns per unit of risk. Veea Inc is currently generating about -0.01 per unit of risk. If you would invest  13,382  in TFI International on October 9, 2024 and sell it today you would earn a total of  28.00  from holding TFI International or generate 0.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	32.79%
Values	Daily Returns

TFI International  vs.  Veea Inc

TFI International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TFI International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, TFI International is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Veea Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Veea Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Veea is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with TFI International and Veea

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

The idea behind TFI International and Veea Inc 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.

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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.