Correlation Between CNH Industrial and Fair Isaac

Can any of the company-specific risk be diversified away by investing in both CNH Industrial and Fair Isaac 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 CNH Industrial and Fair Isaac into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CNH Industrial NV and Fair Isaac, you can compare the effects of market volatilities on CNH Industrial and Fair Isaac 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 CNH Industrial with a short position of Fair Isaac. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNH Industrial and Fair Isaac.

Diversification Opportunities for CNH Industrial and Fair Isaac

-0.8

Correlation Coefficient

CNH Industrial  Fair Isaac

Pay attention - limited upside

The 3 months correlation between CNH and Fair is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding CNH Industrial NV and Fair Isaac in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fair Isaac and CNH Industrial 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 CNH Industrial NV are associated (or correlated) with Fair Isaac. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fair Isaac has no effect on the direction of CNH Industrial i.e., CNH Industrial and Fair Isaac go up and down completely randomly.

Pair Corralation between CNH Industrial and Fair Isaac

Considering the 90-day investment horizon CNH Industrial NV is expected to generate 0.5 times more return on investment than Fair Isaac. However, CNH Industrial NV is 2.02 times less risky than Fair Isaac. It trades about -0.11 of its potential returns per unit of risk. Fair Isaac is currently generating about -0.15 per unit of risk. If you would invest  1,091  in CNH Industrial NV on August 4, 2025 and sell it today you would lose (42.00) from holding CNH Industrial NV or give up 3.85% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

CNH Industrial NV  vs.  Fair Isaac

CNH Industrial NV

Risk-Adjusted Performance

Weakest

Over the last 90 days CNH Industrial NV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in December 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Fair Isaac

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Fair Isaac are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, Fair Isaac displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CNH Industrial and Fair Isaac

The main advantage of trading using opposite CNH Industrial and Fair Isaac positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNH Industrial position performs unexpectedly, Fair Isaac 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 Fair Isaac will offset losses from the drop in Fair Isaac's long position.

The idea behind CNH Industrial NV and Fair Isaac pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.