Correlation Between Cresud SACIF and CF Industries
Can any of the company-specific risk be diversified away by investing in both Cresud SACIF and CF Industries 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 Cresud SACIF and CF Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cresud SACIF y and CF Industries Holdings, you can compare the effects of market volatilities on Cresud SACIF and CF Industries 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 Cresud SACIF with a short position of CF Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cresud SACIF and CF Industries.
Diversification Opportunities for Cresud SACIF and CF Industries
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cresud and CF Industries is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Cresud SACIF y and CF Industries Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CF Industries Holdings and Cresud SACIF 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 Cresud SACIF y are associated (or correlated) with CF Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CF Industries Holdings has no effect on the direction of Cresud SACIF i.e., Cresud SACIF and CF Industries go up and down completely randomly.
Pair Corralation between Cresud SACIF and CF Industries
Assuming the 90 days horizon Cresud SACIF y is expected to generate 1.51 times more return on investment than CF Industries. However, Cresud SACIF is 1.51 times more volatile than CF Industries Holdings. It trades about 0.08 of its potential returns per unit of risk. CF Industries Holdings is currently generating about 0.02 per unit of risk. If you would invest 553.00 in Cresud SACIF y on November 2, 2024 and sell it today you would earn a total of 766.00 from holding Cresud SACIF y or generate 138.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cresud SACIF y vs. CF Industries Holdings
Performance |
| Timeline |
| Cresud SACIF y |
| CF Industries Holdings |
Cresud SACIF and CF Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cresud SACIF and CF Industries
The main advantage of trading using opposite Cresud SACIF and CF Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cresud SACIF position performs unexpectedly, CF Industries 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 CF Industries will offset losses from the drop in CF Industries' long position.| Cresud SACIF vs. Griffon | Cresud SACIF vs. Matthews International | Cresud SACIF vs. Valmont Industries | Cresud SACIF vs. Steel Partners Holdings |
| 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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