Correlation Between AgroFresh Solutions and CF Industries
Can any of the company-specific risk be diversified away by investing in both AgroFresh Solutions 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 AgroFresh Solutions and CF Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AgroFresh Solutions and CF Industries Holdings, you can compare the effects of market volatilities on AgroFresh Solutions 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 AgroFresh Solutions with a short position of CF Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of AgroFresh Solutions and CF Industries.
Diversification Opportunities for AgroFresh Solutions and CF Industries
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AgroFresh and CF Industries is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding AgroFresh Solutions 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 AgroFresh Solutions 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 AgroFresh Solutions 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 AgroFresh Solutions i.e., AgroFresh Solutions and CF Industries go up and down completely randomly.
Pair Corralation between AgroFresh Solutions and CF Industries
If you would invest 300.00 in AgroFresh Solutions on January 25, 2024 and sell it today you would earn a total of 0.00 from holding AgroFresh Solutions or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
AgroFresh Solutions vs. CF Industries Holdings
Performance |
| Timeline |
| AgroFresh Solutions |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CF Industries Holdings |
AgroFresh Solutions and CF Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AgroFresh Solutions and CF Industries
The main advantage of trading using opposite AgroFresh Solutions and CF Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AgroFresh Solutions 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.| AgroFresh Solutions vs. SW Seed Company | AgroFresh Solutions vs. Local Bounti Corp | AgroFresh Solutions vs. Edible Garden AG | AgroFresh Solutions vs. Limoneira Co |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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