Correlation Between CF Industries and WELLTOWER
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By analyzing existing cross correlation between CF Industries Holdings and WELLTOWER INC 425, you can compare the effects of market volatilities on CF Industries and WELLTOWER 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 WELLTOWER. Check out your portfolio center. Please also check ongoing floating volatility patterns of CF Industries and WELLTOWER.
Diversification Opportunities for CF Industries and WELLTOWER
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between CF Industries and WELLTOWER is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding CF Industries Holdings and WELLTOWER INC 425 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WELLTOWER INC 425 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 WELLTOWER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WELLTOWER INC 425 has no effect on the direction of CF Industries i.e., CF Industries and WELLTOWER go up and down completely randomly.
Pair Corralation between CF Industries and WELLTOWER
Allowing for the 90-day total investment horizon CF Industries Holdings is expected to generate 3.32 times more return on investment than WELLTOWER. However, CF Industries is 3.32 times more volatile than WELLTOWER INC 425. It trades about 0.0 of its potential returns per unit of risk. WELLTOWER INC 425 is currently generating about -0.01 per unit of risk. If you would invest 9,342 in CF Industries Holdings on September 3, 2024 and sell it today you would lose (376.00) from holding CF Industries Holdings or give up 4.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.38% |
| Values | Daily Returns |
CF Industries Holdings vs. WELLTOWER INC 425
Performance |
| Timeline |
| CF Industries Holdings |
| WELLTOWER INC 425 |
CF Industries and WELLTOWER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CF Industries and WELLTOWER
The main advantage of trading using opposite CF Industries and WELLTOWER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CF Industries position performs unexpectedly, WELLTOWER 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 WELLTOWER will offset losses from the drop in WELLTOWER's long position.| CF Industries vs. Nutrien | CF Industries vs. Intrepid Potash | CF Industries vs. Corteva | CF Industries vs. ICL Israel Chemicals |
| WELLTOWER vs. Mediag3 | WELLTOWER vs. CenterPoint Energy | WELLTOWER vs. Cheniere Energy Partners | WELLTOWER vs. Archrock |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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