Correlation Between CEMATRIX and Holcim
Can any of the company-specific risk be diversified away by investing in both CEMATRIX and Holcim 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 CEMATRIX and Holcim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CEMATRIX and Holcim, you can compare the effects of market volatilities on CEMATRIX and Holcim 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 CEMATRIX with a short position of Holcim. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEMATRIX and Holcim.
Diversification Opportunities for CEMATRIX and Holcim
Very good diversification
The 3 months correlation between CEMATRIX and Holcim is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding CEMATRIX and Holcim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holcim and CEMATRIX 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 CEMATRIX are associated (or correlated) with Holcim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Holcim has no effect on the direction of CEMATRIX i.e., CEMATRIX and Holcim go up and down completely randomly.
Pair Corralation between CEMATRIX and Holcim
Assuming the 90 days horizon CEMATRIX is expected to under-perform the Holcim. In addition to that, CEMATRIX is 2.81 times more volatile than Holcim. It trades about -0.07 of its total potential returns per unit of risk. Holcim is currently generating about 0.06 per unit of volatility. If you would invest 8,899 in Holcim on November 28, 2024 and sell it today you would earn a total of 1,646 from holding Holcim or generate 18.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.46% |
| Values | Daily Returns |
CEMATRIX vs. Holcim
Performance |
| Timeline |
| CEMATRIX |
| Holcim |
CEMATRIX and Holcim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CEMATRIX and Holcim
The main advantage of trading using opposite CEMATRIX and Holcim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CEMATRIX position performs unexpectedly, Holcim 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 Holcim will offset losses from the drop in Holcim's long position.| CEMATRIX vs. Tecnoglass | CEMATRIX vs. Xinyi Glass Holdings | CEMATRIX vs. Anhui Conch Cement | CEMATRIX vs. Basanite |
| Holcim vs. HeidelbergCement AG ADR | Holcim vs. Anhui Conch Cement | Holcim vs. Buzzi Unicem SpA | Holcim vs. Wienerberger Baustoffindustrie |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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