Correlation Between CF Industries and Very Good
Can any of the company-specific risk be diversified away by investing in both CF Industries and Very Good at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining CF Industries and Very Good into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CF Industries Holdings and The Very Good, you can compare the effects of market volatilities on CF Industries and Very Good 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 Very Good. Check out your portfolio center. Please also check ongoing floating volatility patterns of CF Industries and Very Good.
Diversification Opportunities for CF Industries and Very Good
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CF Industries and Very is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding CF Industries Holdings and The Very Good in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Very Good 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 Very Good. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Very Good has no effect on the direction of CF Industries i.e., CF Industries and Very Good go up and down completely randomly.
Pair Corralation between CF Industries and Very Good
If you would invest 8,458 in CF Industries Holdings on September 12, 2024 and sell it today you would earn a total of 426.00 from holding CF Industries Holdings or generate 5.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
CF Industries Holdings vs. The Very Good
Performance |
| Timeline |
| CF Industries Holdings |
| Very Good |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CF Industries and Very Good Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CF Industries and Very Good
The main advantage of trading using opposite CF Industries and Very Good positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CF Industries position performs unexpectedly, Very Good 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 Very Good will offset losses from the drop in Very Good's long position.| CF Industries vs. Nutrien | CF Industries vs. Intrepid Potash | CF Industries vs. Corteva | CF Industries vs. ICL Israel Chemicals |
| Very Good vs. Sensient Technologies | Very Good vs. CF Industries Holdings | Very Good vs. Sealed Air | Very Good vs. Mativ Holdings |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |