Correlation Between CF Industries and Infrastructure
Can any of the company-specific risk be diversified away by investing in both CF Industries and Infrastructure 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 Infrastructure 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 Infrastructure And Energy, you can compare the effects of market volatilities on CF Industries and Infrastructure 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 Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of CF Industries and Infrastructure.
Diversification Opportunities for CF Industries and Infrastructure
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CF Industries and Infrastructure is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CF Industries Holdings and Infrastructure And Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infrastructure And Energy 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 Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infrastructure And Energy has no effect on the direction of CF Industries i.e., CF Industries and Infrastructure go up and down completely randomly.
Pair Corralation between CF Industries and Infrastructure
If you would invest 8,822 in CF Industries Holdings on October 9, 2024 and sell it today you would earn a total of 154.00 from holding CF Industries Holdings or generate 1.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
CF Industries Holdings vs. Infrastructure And Energy
Performance |
| Timeline |
| CF Industries Holdings |
| Infrastructure And Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CF Industries and Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CF Industries and Infrastructure
The main advantage of trading using opposite CF Industries and Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CF Industries position performs unexpectedly, Infrastructure 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 Infrastructure will offset losses from the drop in Infrastructure's long position.| CF Industries vs. Nutrien | CF Industries vs. Intrepid Potash | CF Industries vs. Corteva | CF Industries vs. ICL Israel Chemicals |
| Infrastructure vs. Merit Medical Systems | Infrastructure vs. Summit Therapeutics PLC | Infrastructure vs. Valneva SE ADR | Infrastructure vs. Apogee Therapeutics, Common |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |