Correlation Between CF Industries and REPUBLIC
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By analyzing existing cross correlation between CF Industries Holdings and REPUBLIC SERVICES INC, you can compare the effects of market volatilities on CF Industries and REPUBLIC 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 REPUBLIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of CF Industries and REPUBLIC.
Diversification Opportunities for CF Industries and REPUBLIC
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CF Industries and REPUBLIC is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding CF Industries Holdings and REPUBLIC SERVICES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REPUBLIC SERVICES INC 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 REPUBLIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REPUBLIC SERVICES INC has no effect on the direction of CF Industries i.e., CF Industries and REPUBLIC go up and down completely randomly.
Pair Corralation between CF Industries and REPUBLIC
Allowing for the 90-day total investment horizon CF Industries Holdings is expected to generate 3.34 times more return on investment than REPUBLIC. However, CF Industries is 3.34 times more volatile than REPUBLIC SERVICES INC. It trades about 0.18 of its potential returns per unit of risk. REPUBLIC SERVICES INC is currently generating about 0.02 per unit of risk. If you would invest 8,471 in CF Industries Holdings on September 14, 2024 and sell it today you would earn a total of 511.00 from holding CF Industries Holdings or generate 6.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
CF Industries Holdings vs. REPUBLIC SERVICES INC
Performance |
| Timeline |
| CF Industries Holdings |
| REPUBLIC SERVICES INC |
CF Industries and REPUBLIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CF Industries and REPUBLIC
The main advantage of trading using opposite CF Industries and REPUBLIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CF Industries position performs unexpectedly, REPUBLIC 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 REPUBLIC will offset losses from the drop in REPUBLIC's long position.| CF Industries vs. Intrepid Potash | CF Industries vs. Corteva | CF Industries vs. ICL Israel Chemicals | CF Industries vs. The Mosaic |
| REPUBLIC vs. Grupo Aeroportuario del | REPUBLIC vs. Corporacion America Airports | REPUBLIC vs. Mesa Air Group | REPUBLIC vs. Finnair Oyj |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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