Correlation Between TFI International and CSW Industrials,

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

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

Diversification Opportunities for TFI International and CSW Industrials,

0.11

Correlation Coefficient

TFI International  CSW Industrials,

Average diversification

The 3 months correlation between TFI and CSW is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding TFI International and CSW Industrials, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSW Industrials, 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 CSW Industrials,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSW Industrials, has no effect on the direction of TFI International i.e., TFI International and CSW Industrials, go up and down completely randomly.

Pair Corralation between TFI International and CSW Industrials,

Given the investment horizon of 90 days TFI International is expected to generate 0.98 times more return on investment than CSW Industrials,. However, TFI International is 1.02 times less risky than CSW Industrials,. It trades about 0.02 of its potential returns per unit of risk. CSW Industrials, is currently generating about -0.15 per unit of risk. If you would invest  8,911  in TFI International on May 18, 2025 and sell it today you would earn a total of  156.00  from holding TFI International or generate 1.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

TFI International  vs.  CSW Industrials,

TFI International

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in TFI International are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. 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.

CSW Industrials,

Risk-Adjusted Performance

Weakest

Over the last 90 days CSW Industrials, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in September 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with TFI International and CSW Industrials,

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

The idea behind TFI International and CSW Industrials, 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.