Correlation Between CEMEX SAB and Barclays PLC
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By analyzing existing cross correlation between CEMEX SAB de and Barclays PLC, you can compare the effects of market volatilities on CEMEX SAB and Barclays PLC 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 CEMEX SAB with a short position of Barclays PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEMEX SAB and Barclays PLC.
Diversification Opportunities for CEMEX SAB and Barclays PLC
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between CEMEX and Barclays is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding CEMEX SAB de and Barclays PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barclays PLC and CEMEX SAB 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 CEMEX SAB de are associated (or correlated) with Barclays PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barclays PLC has no effect on the direction of CEMEX SAB i.e., CEMEX SAB and Barclays PLC go up and down completely randomly.
Pair Corralation between CEMEX SAB and Barclays PLC
Assuming the 90 days trading horizon CEMEX SAB is expected to generate 1.08 times less return on investment than Barclays PLC. In addition to that, CEMEX SAB is 1.18 times more volatile than Barclays PLC. It trades about 0.14 of its total potential returns per unit of risk. Barclays PLC is currently generating about 0.17 per unit of volatility. If you would invest 25,265 in Barclays PLC on November 1, 2024 and sell it today you would earn a total of 5,235 from holding Barclays PLC or generate 20.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CEMEX SAB de vs. Barclays PLC
Performance |
| Timeline |
| CEMEX SAB de |
| Barclays PLC |
CEMEX SAB and Barclays PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CEMEX SAB and Barclays PLC
The main advantage of trading using opposite CEMEX SAB and Barclays PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CEMEX SAB position performs unexpectedly, Barclays PLC 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 Barclays PLC will offset losses from the drop in Barclays PLC's long position.| CEMEX SAB vs. Martin Marietta Materials | CEMEX SAB vs. Masco | CEMEX SAB vs. TopBuild Corp | CEMEX SAB vs. Corporacin Moctezuma SAB |
| Barclays PLC vs. Desarrolladora Homex SAB | Barclays PLC vs. Deutsche Bank Aktiengesellschaft | Barclays PLC vs. Grupo Carso SAB | Barclays PLC vs. KB Home |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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