Correlation Between CF Industries and ADAPTHEALTH
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By analyzing existing cross correlation between CF Industries Holdings and ADAPTHEALTH LLC 6125, you can compare the effects of market volatilities on CF Industries and ADAPTHEALTH 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 ADAPTHEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of CF Industries and ADAPTHEALTH.
Diversification Opportunities for CF Industries and ADAPTHEALTH
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CF Industries and ADAPTHEALTH is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding CF Industries Holdings and ADAPTHEALTH LLC 6125 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADAPTHEALTH LLC 6125 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 ADAPTHEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADAPTHEALTH LLC 6125 has no effect on the direction of CF Industries i.e., CF Industries and ADAPTHEALTH go up and down completely randomly.
Pair Corralation between CF Industries and ADAPTHEALTH
Allowing for the 90-day total investment horizon CF Industries Holdings is expected to generate 4.72 times more return on investment than ADAPTHEALTH. However, CF Industries is 4.72 times more volatile than ADAPTHEALTH LLC 6125. It trades about 0.06 of its potential returns per unit of risk. ADAPTHEALTH LLC 6125 is currently generating about 0.09 per unit of risk. If you would invest 7,954 in CF Industries Holdings on September 2, 2024 and sell it today you would earn a total of 1,012 from holding CF Industries Holdings or generate 12.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 76.98% |
| Values | Daily Returns |
CF Industries Holdings vs. ADAPTHEALTH LLC 6125
Performance |
| Timeline |
| CF Industries Holdings |
| ADAPTHEALTH LLC 6125 |
CF Industries and ADAPTHEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CF Industries and ADAPTHEALTH
The main advantage of trading using opposite CF Industries and ADAPTHEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CF Industries position performs unexpectedly, ADAPTHEALTH 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 ADAPTHEALTH will offset losses from the drop in ADAPTHEALTH's long position.| CF Industries vs. Nutrien | CF Industries vs. Intrepid Potash | CF Industries vs. Corteva | CF Industries vs. ICL Israel Chemicals |
| ADAPTHEALTH vs. AEP TEX INC | ADAPTHEALTH vs. US BANK NATIONAL | ADAPTHEALTH vs. FactSet Research Systems | ADAPTHEALTH vs. Golden Agri Resources |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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