Correlation Between TFI International and Keyera Corp

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

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

Diversification Opportunities for TFI International and Keyera Corp

0.43

Correlation Coefficient

TFI International  Keyera Corp

Very weak diversification

The 3 months correlation between TFI and Keyera is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding TFI International and Keyera Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keyera Corp 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 Keyera Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keyera Corp has no effect on the direction of TFI International i.e., TFI International and Keyera Corp go up and down completely randomly.

Pair Corralation between TFI International and Keyera Corp

Assuming the 90 days trading horizon TFI International is expected to generate 1.76 times more return on investment than Keyera Corp. However, TFI International is 1.76 times more volatile than Keyera Corp. It trades about 0.03 of its potential returns per unit of risk. Keyera Corp is currently generating about 0.01 per unit of risk. If you would invest  11,623  in TFI International on April 20, 2025 and sell it today you would earn a total of  489.00  from holding TFI International or generate 4.21% return on investment over 90 days.

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

TFI International  vs.  Keyera Corp

TFI International

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in TFI International are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, TFI International displayed solid returns over the last few months and may actually be approaching a breakup point.

Keyera Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Keyera Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Keyera Corp may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with TFI International and Keyera Corp

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

The idea behind TFI International and Keyera Corp 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.