Correlation Between CF Industries and Jaws Hurricane
Can any of the company-specific risk be diversified away by investing in both CF Industries and Jaws Hurricane 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 CF Industries and Jaws Hurricane into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CF Industries Holdings and Jaws Hurricane Acquisition, you can compare the effects of market volatilities on CF Industries and Jaws Hurricane 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 CF Industries with a short position of Jaws Hurricane. Check out your portfolio center. Please also check ongoing floating volatility patterns of CF Industries and Jaws Hurricane.
Diversification Opportunities for CF Industries and Jaws Hurricane
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CF Industries and Jaws is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding CF Industries Holdings and Jaws Hurricane Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaws Hurricane Acqui and CF Industries 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 CF Industries Holdings are associated (or correlated) with Jaws Hurricane. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaws Hurricane Acqui has no effect on the direction of CF Industries i.e., CF Industries and Jaws Hurricane go up and down completely randomly.
Pair Corralation between CF Industries and Jaws Hurricane
If you would invest 8,591 in CF Industries Holdings on September 4, 2024 and sell it today you would earn a total of 505.00 from holding CF Industries Holdings or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
CF Industries Holdings vs. Jaws Hurricane Acquisition
Performance |
| Timeline |
| CF Industries Holdings |
| Jaws Hurricane Acqui |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CF Industries and Jaws Hurricane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CF Industries and Jaws Hurricane
The main advantage of trading using opposite CF Industries and Jaws Hurricane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CF Industries position performs unexpectedly, Jaws Hurricane 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 Jaws Hurricane will offset losses from the drop in Jaws Hurricane's long position.| CF Industries vs. Nutrien | CF Industries vs. Intrepid Potash | CF Industries vs. Corteva | CF Industries vs. ICL Israel Chemicals |
| Jaws Hurricane vs. EMCOR Group | Jaws Hurricane vs. Everus Construction Group | Jaws Hurricane vs. Li Auto | Jaws Hurricane vs. Brunswick |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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