Correlation Between TFI International and CSX
Can any of the company-specific risk be diversified away by investing in both TFI International and CSX 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 CSX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TFI International and CSX Corporation, you can compare the effects of market volatilities on TFI International and CSX 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 CSX. Check out your portfolio center. Please also check ongoing floating volatility patterns of TFI International and CSX.
Diversification Opportunities for TFI International and CSX
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between TFI and CSX is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding TFI International and CSX Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSX Corporation 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 CSX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSX Corporation has no effect on the direction of TFI International i.e., TFI International and CSX go up and down completely randomly.
Pair Corralation between TFI International and CSX
Given the investment horizon of 90 days TFI International is expected to under-perform the CSX. In addition to that, TFI International is 1.33 times more volatile than CSX Corporation. It trades about 0.0 of its total potential returns per unit of risk. CSX Corporation is currently generating about 0.13 per unit of volatility. If you would invest 3,119 in CSX Corporation on March 17, 2025 and sell it today you would earn a total of 93.00 from holding CSX Corporation or generate 2.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
TFI International vs. CSX Corp.
Performance |
| Timeline |
| TFI International |
| CSX Corporation |
TFI International and CSX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TFI International and CSX
The main advantage of trading using opposite TFI International and CSX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TFI International position performs unexpectedly, CSX 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 CSX will offset losses from the drop in CSX's long position.| TFI International vs. Heartland Express | TFI International vs. Universal Logistics Holdings | TFI International vs. Schneider National | TFI International vs. Marten Transport |
| CSX vs. Union Pacific | CSX vs. Canadian National Railway | CSX vs. Canadian Pacific Railway | CSX vs. Westinghouse Air Brake |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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