Correlation Between CF Industries and DTRGR
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By analyzing existing cross correlation between CF Industries Holdings and DTRGR 365 07 APR 27, you can compare the effects of market volatilities on CF Industries and DTRGR 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 DTRGR. Check out your portfolio center. Please also check ongoing floating volatility patterns of CF Industries and DTRGR.
Diversification Opportunities for CF Industries and DTRGR
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CF Industries and DTRGR is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding CF Industries Holdings and DTRGR 365 07 APR 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DTRGR 365 07 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 DTRGR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DTRGR 365 07 has no effect on the direction of CF Industries i.e., CF Industries and DTRGR go up and down completely randomly.
Pair Corralation between CF Industries and DTRGR
Allowing for the 90-day total investment horizon CF Industries Holdings is expected to generate 8.47 times more return on investment than DTRGR. However, CF Industries is 8.47 times more volatile than DTRGR 365 07 APR 27. It trades about 0.21 of its potential returns per unit of risk. DTRGR 365 07 APR 27 is currently generating about -0.03 per unit of risk. If you would invest 8,357 in CF Industries Holdings on September 2, 2024 and sell it today you would earn a total of 609.00 from holding CF Industries Holdings or generate 7.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 33.33% |
| Values | Daily Returns |
CF Industries Holdings vs. DTRGR 365 07 APR 27
Performance |
| Timeline |
| CF Industries Holdings |
| DTRGR 365 07 |
CF Industries and DTRGR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CF Industries and DTRGR
The main advantage of trading using opposite CF Industries and DTRGR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CF Industries position performs unexpectedly, DTRGR 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 DTRGR will offset losses from the drop in DTRGR's long position.| CF Industries vs. Nutrien | CF Industries vs. Intrepid Potash | CF Industries vs. Corteva | CF Industries vs. ICL Israel Chemicals |
| DTRGR vs. Avient Corp | DTRGR vs. CF Industries Holdings | DTRGR vs. Jeld Wen Holding | DTRGR vs. Tencent Music Entertainment |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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