Correlation Between CEMEX SAB and Grupo Financiero
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By analyzing existing cross correlation between CEMEX SAB de and Grupo Financiero Banorte, you can compare the effects of market volatilities on CEMEX SAB and Grupo Financiero 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 Grupo Financiero. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEMEX SAB and Grupo Financiero.
Diversification Opportunities for CEMEX SAB and Grupo Financiero
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CEMEX and Grupo is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding CEMEX SAB de and Grupo Financiero Banorte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Financiero Banorte 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 Grupo Financiero. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Financiero Banorte has no effect on the direction of CEMEX SAB i.e., CEMEX SAB and Grupo Financiero go up and down completely randomly.
Pair Corralation between CEMEX SAB and Grupo Financiero
Assuming the 90 days trading horizon CEMEX SAB de is expected to generate 1.02 times more return on investment than Grupo Financiero. However, CEMEX SAB is 1.02 times more volatile than Grupo Financiero Banorte. It trades about 0.0 of its potential returns per unit of risk. Grupo Financiero Banorte is currently generating about -0.02 per unit of risk. If you would invest 1,300 in CEMEX SAB de on November 5, 2024 and sell it today you would lose (70.00) from holding CEMEX SAB de or give up 5.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CEMEX SAB de vs. Grupo Financiero Banorte
Performance |
| Timeline |
| CEMEX SAB de |
| Grupo Financiero Banorte |
CEMEX SAB and Grupo Financiero Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CEMEX SAB and Grupo Financiero
The main advantage of trading using opposite CEMEX SAB and Grupo Financiero positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CEMEX SAB position performs unexpectedly, Grupo Financiero 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 Grupo Financiero will offset losses from the drop in Grupo Financiero's long position.| CEMEX SAB vs. Grupo Mxico SAB | CEMEX SAB vs. Alfa SAB de | CEMEX SAB vs. Grupo Financiero Banorte | CEMEX SAB vs. Fomento Econmico Mexicano |
| Grupo Financiero vs. Cognizant Technology Solutions | Grupo Financiero vs. GMxico Transportes SAB | Grupo Financiero vs. Grupo Sports World | Grupo Financiero vs. Samsung Electronics Co |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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