Correlation Between 20826FAC0 and CF Industries
Specify exactly 2 symbols:
By analyzing existing cross correlation between CONOCOPHILLIPS 43 percent and CF Industries Holdings, you can compare the effects of market volatilities on 20826FAC0 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 20826FAC0 with a short position of CF Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of 20826FAC0 and CF Industries.
Diversification Opportunities for 20826FAC0 and CF Industries
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 20826FAC0 and CF Industries is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding CONOCOPHILLIPS 43 percent 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 20826FAC0 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 CONOCOPHILLIPS 43 percent 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 20826FAC0 i.e., 20826FAC0 and CF Industries go up and down completely randomly.
Pair Corralation between 20826FAC0 and CF Industries
Assuming the 90 days trading horizon CONOCOPHILLIPS 43 percent is expected to under-perform the CF Industries. But the bond apears to be less risky and, when comparing its historical volatility, CONOCOPHILLIPS 43 percent is 1.42 times less risky than CF Industries. The bond trades about -0.05 of its potential returns per unit of risk. The CF Industries Holdings is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 8,591 in CF Industries Holdings on September 4, 2024 and sell it today you would earn a total of 505.00 from holding CF Industries Holdings or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 76.19% |
| Values | Daily Returns |
CONOCOPHILLIPS 43 percent vs. CF Industries Holdings
Performance |
| Timeline |
| CONOCOPHILLIPS 43 percent |
| CF Industries Holdings |
20826FAC0 and CF Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 20826FAC0 and CF Industries
The main advantage of trading using opposite 20826FAC0 and CF Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 20826FAC0 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.| 20826FAC0 vs. Hurco Companies | 20826FAC0 vs. Highway Holdings Limited | 20826FAC0 vs. Dennys Corp | 20826FAC0 vs. Dine Brands Global |
| 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |