Correlation Between CF Industries and SCHWAB
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By analyzing existing cross correlation between CF Industries Holdings and SCHWAB CHARLES P, you can compare the effects of market volatilities on CF Industries and SCHWAB 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 SCHWAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of CF Industries and SCHWAB.
Diversification Opportunities for CF Industries and SCHWAB
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CF Industries and SCHWAB is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding CF Industries Holdings and SCHWAB CHARLES P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCHWAB CHARLES P 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 SCHWAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCHWAB CHARLES P has no effect on the direction of CF Industries i.e., CF Industries and SCHWAB go up and down completely randomly.
Pair Corralation between CF Industries and SCHWAB
Allowing for the 90-day total investment horizon CF Industries Holdings is expected to generate 7.83 times more return on investment than SCHWAB. However, CF Industries is 7.83 times more volatile than SCHWAB CHARLES P. It trades about 0.06 of its potential returns per unit of risk. SCHWAB CHARLES P is currently generating about 0.0 per unit of risk. If you would invest 7,464 in CF Industries Holdings on September 3, 2024 and sell it today you would earn a total of 1,632 from holding CF Industries Holdings or generate 21.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.38% |
| Values | Daily Returns |
CF Industries Holdings vs. SCHWAB CHARLES P
Performance |
| Timeline |
| CF Industries Holdings |
| SCHWAB CHARLES P |
CF Industries and SCHWAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CF Industries and SCHWAB
The main advantage of trading using opposite CF Industries and SCHWAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CF Industries position performs unexpectedly, SCHWAB 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 SCHWAB will offset losses from the drop in SCHWAB's long position.| CF Industries vs. Nutrien | CF Industries vs. Intrepid Potash | CF Industries vs. Corteva | CF Industries vs. ICL Israel Chemicals |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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