Correlation Between Amsted and CF Industries
Specify exactly 2 symbols:
By analyzing existing cross correlation between Amsted Industries 4625 and CF Industries Holdings, you can compare the effects of market volatilities on Amsted 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 Amsted with a short position of CF Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amsted and CF Industries.
Diversification Opportunities for Amsted and CF Industries
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Amsted and CF Industries is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Amsted Industries 4625 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 Amsted 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 Amsted Industries 4625 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 Amsted i.e., Amsted and CF Industries go up and down completely randomly.
Pair Corralation between Amsted and CF Industries
Assuming the 90 days trading horizon Amsted is expected to generate 2.51 times less return on investment than CF Industries. But when comparing it to its historical volatility, Amsted Industries 4625 is 3.06 times less risky than CF Industries. It trades about 0.27 of its potential returns per unit of risk. CF Industries Holdings is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 8,143 in CF Industries Holdings on August 28, 2024 and sell it today you would earn a total of 671.00 from holding CF Industries Holdings or generate 8.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 68.18% |
| Values | Daily Returns |
Amsted Industries 4625 vs. CF Industries Holdings
Performance |
| Timeline |
| Amsted Industries 4625 |
| CF Industries Holdings |
Amsted and CF Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amsted and CF Industries
The main advantage of trading using opposite Amsted and CF Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amsted 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.| Amsted vs. The Coca Cola | Amsted vs. JPMorgan Chase Co | Amsted vs. Dupont De Nemours | Amsted vs. Alcoa Corp |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |