Cf Industries Holdings Stock Volatility
| CF Stock | USD 89.66 1.00 1.13% |
CF Industries appears to be very steady, given 3 months investment horizon. CF Industries Holdings retains Efficiency (Sharpe Ratio) of 0.15, which signifies that the company had a 0.15% return per unit of price deviation over the last 3 months. We have found twenty-nine technical indicators for CF Industries, which you can use to evaluate the volatility of the firm. Please makes use of CF Industries' Coefficient Of Variation of 978.36, market risk adjusted performance of 18.89, and Standard Deviation of 1.56 to double-check if our risk estimates are consistent with your expectations. Key indicators related to CF Industries' volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
CF Industries Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of CF Industries daily returns, and it is calculated using variance and standard deviation. We also use CF Industries's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of CF Industries volatility.
CF Industries |
ESG Sustainability
While most ESG disclosures are voluntary, CF Industries' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to CF Industries' managers and investors.Environmental | Governance | Social |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as CF Industries can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game as hey may decide to buy additional stocks of CF Industries at lower prices to lower their average cost per share. Similarly, when the prices of CF Industries' stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving against CF Industries Stock
| 0.76 | NITO | N2OFF Inc Symbol Change | PairCorr |
| 0.59 | BIOX | Bioceres Crop Solutions | PairCorr |
| 0.43 | BHIL | Benson Hill, Common | PairCorr |
| 0.42 | YTEN | Yield10 Bioscience | PairCorr |
CF Industries Market Sensitivity And Downside Risk
CF Industries' beta coefficient measures the volatility of CF Industries stock compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents CF Industries stock's returns against your selected market. In other words, CF Industries's beta of 0.0079 provides an investor with an approximation of how much risk CF Industries stock can potentially add to one of your existing portfolios. CF Industries Holdings has relatively low volatility with skewness of -0.83 and kurtosis of 0.8. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure CF Industries' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact CF Industries' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze CF Industries Holdings Demand TrendCheck current 90 days CF Industries correlation with market (Dow Jones Industrial)CF Industries Beta |
CF Industries standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.
Standard Deviation | 1.46 |
It is essential to understand the difference between upside risk (as represented by CF Industries's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of CF Industries' daily returns or price. Since the actual investment returns on holding a position in cf industries stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in CF Industries.
CF Industries Holdings Stock Volatility Analysis
Volatility refers to the frequency at which CF Industries stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with CF Industries' price changes. Investors will then calculate the volatility of CF Industries' stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of CF Industries' volatility:
Historical Volatility
This type of stock volatility measures CF Industries' fluctuations based on previous trends. It's commonly used to predict CF Industries' future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for CF Industries' current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on CF Industries' to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of sixty-one. CF Industries Holdings Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
CF Industries Projected Return Density Against Market
Allowing for the 90-day total investment horizon CF Industries has a beta of 0.0079 suggesting as returns on the market go up, CF Industries average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding CF Industries Holdings will be expected to be much smaller as well.Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to CF Industries or Chemicals sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that CF Industries' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a CF Industries stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
CF Industries Holdings has an alpha of 0.1481, implying that it can generate a 0.15 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a CF Industries Price Volatility?
Several factors can influence a stock's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.CF Industries Stock Risk Measures
Allowing for the 90-day total investment horizon the coefficient of variation of CF Industries is 665.89. The daily returns are distributed with a variance of 2.12 and standard deviation of 1.46. The mean deviation of CF Industries Holdings is currently at 1.16. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.15 | |
β | Beta against Dow Jones | 0.01 | |
σ | Overall volatility | 1.46 | |
Ir | Information ratio | 0.01 |
CF Industries Stock Return Volatility
CF Industries historical daily return volatility represents how much of CF Industries stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 1.4559% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7502% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About CF Industries Volatility
Volatility is a rate at which the price of CF Industries or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of CF Industries may increase or decrease. In other words, similar to CF Industries's beta indicator, it measures the risk of CF Industries and helps estimate the fluctuations that may happen in a short period of time. So if prices of CF Industries fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.| Last Reported | Projected for Next Year | ||
| Market Cap | 6.6 B | 5.9 B |
CF Industries' stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on CF Industries Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much CF Industries' price varies over time.
3 ways to utilize CF Industries' volatility to invest better
Higher CF Industries' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of CF Industries Holdings stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. CF Industries Holdings stock volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of CF Industries Holdings investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in CF Industries' stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of CF Industries' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
CF Industries Investment Opportunity
CF Industries Holdings has a volatility of 1.46 and is 1.95 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of CF Industries Holdings is lower than 12 percent of all global equities and portfolios over the last 90 days. You can use CF Industries Holdings to enhance the returns of your portfolios. The stock experiences a large bullish trend. Check odds of CF Industries to be traded at $98.63 in 90 days.CF Industries Additional Risk Indicators
The analysis of CF Industries' secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in CF Industries' investment and either accepting that risk or mitigating it. Along with some common measures of CF Industries stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | 0.0832 | |||
| Market Risk Adjusted Performance | 18.89 | |||
| Mean Deviation | 1.2 | |||
| Semi Deviation | 1.8 | |||
| Downside Deviation | 1.97 | |||
| Coefficient Of Variation | 978.36 | |||
| Standard Deviation | 1.56 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
CF Industries Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
| GM vs. CF Industries | ||
| Ford vs. CF Industries | ||
| Salesforce vs. CF Industries | ||
| Alphabet vs. CF Industries | ||
| Microsoft vs. CF Industries | ||
| Visa vs. CF Industries | ||
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against CF Industries as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. CF Industries' systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, CF Industries' unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to CF Industries Holdings.
Complementary Tools for CF Industries Stock analysis
When running CF Industries' price analysis, check to measure CF Industries' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy CF Industries is operating at the current time. Most of CF Industries' value examination focuses on studying past and present price action to predict the probability of CF Industries' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CF Industries' price. Additionally, you may evaluate how the addition of CF Industries to your portfolios can decrease your overall portfolio volatility.
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |