Correlation Between Forian and TFI International

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Can any of the company-specific risk be diversified away by investing in both Forian 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 Forian and TFI International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Forian Inc and TFI International, you can compare the effects of market volatilities on Forian 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 Forian with a short position of TFI International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Forian and TFI International.

Diversification Opportunities for Forian and TFI International

0.41
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Forian and TFI is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Forian Inc and TFI International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TFI International and Forian 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 Forian Inc 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 Forian i.e., Forian and TFI International go up and down completely randomly.

Pair Corralation between Forian and TFI International

Given the investment horizon of 90 days Forian is expected to generate 2.83 times less return on investment than TFI International. In addition to that, Forian is 1.7 times more volatile than TFI International. It trades about 0.03 of its total potential returns per unit of risk. TFI International is currently generating about 0.14 per unit of volatility. If you would invest  7,607  in TFI International on April 6, 2025 and sell it today you would earn a total of  1,791  from holding TFI International or generate 23.54% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Forian Inc  vs.  TFI International

 Performance 
       Timeline  
Forian Inc 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Forian Inc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating basic indicators, Forian may actually be approaching a critical reversion point that can send shares even higher in August 2025.
TFI International 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in TFI International are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly fragile forward indicators, TFI International demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Forian and TFI International Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Forian and TFI International

The main advantage of trading using opposite Forian and TFI International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Forian 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.
The idea behind Forian Inc and TFI International 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.

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