Correlation Between CEMEX SAB and Grupo Simec
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By analyzing existing cross correlation between CEMEX SAB de and Grupo Simec SAB, you can compare the effects of market volatilities on CEMEX SAB and Grupo Simec 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 Simec. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEMEX SAB and Grupo Simec.
Diversification Opportunities for CEMEX SAB and Grupo Simec
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between CEMEX and Grupo is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding CEMEX SAB de and Grupo Simec SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Simec SAB 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 Simec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Simec SAB has no effect on the direction of CEMEX SAB i.e., CEMEX SAB and Grupo Simec go up and down completely randomly.
Pair Corralation between CEMEX SAB and Grupo Simec
Assuming the 90 days trading horizon CEMEX SAB de is expected to generate 1.94 times more return on investment than Grupo Simec. However, CEMEX SAB is 1.94 times more volatile than Grupo Simec SAB. It trades about 0.0 of its potential returns per unit of risk. Grupo Simec SAB is currently generating about -0.02 per unit of risk. If you would invest 1,251 in CEMEX SAB de on September 12, 2024 and sell it today you would lose (99.00) from holding CEMEX SAB de or give up 7.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CEMEX SAB de vs. Grupo Simec SAB
Performance |
| Timeline |
| CEMEX SAB de |
| Grupo Simec SAB |
CEMEX SAB and Grupo Simec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CEMEX SAB and Grupo Simec
The main advantage of trading using opposite CEMEX SAB and Grupo Simec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CEMEX SAB position performs unexpectedly, Grupo Simec 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 Simec will offset losses from the drop in Grupo Simec'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 Simec vs. CEMEX SAB de | Grupo Simec vs. Grupo Financiero Banorte | Grupo Simec vs. Alfa SAB de | Grupo Simec vs. Fomento Econmico Mexicano |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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