Correlation Between Cemex SAB and Anhui Conch
Can any of the company-specific risk be diversified away by investing in both Cemex SAB and Anhui Conch 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 Cemex SAB and Anhui Conch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cemex SAB de and Anhui Conch Cement, you can compare the effects of market volatilities on Cemex SAB and Anhui Conch 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 Anhui Conch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cemex SAB and Anhui Conch.
Diversification Opportunities for Cemex SAB and Anhui Conch
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cemex and Anhui is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Cemex SAB de and Anhui Conch Cement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Conch Cement 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 Anhui Conch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Conch Cement has no effect on the direction of Cemex SAB i.e., Cemex SAB and Anhui Conch go up and down completely randomly.
Pair Corralation between Cemex SAB and Anhui Conch
Allowing for the 90-day total investment horizon Cemex SAB de is expected to generate 1.97 times more return on investment than Anhui Conch. However, Cemex SAB is 1.97 times more volatile than Anhui Conch Cement. It trades about 0.16 of its potential returns per unit of risk. Anhui Conch Cement is currently generating about -0.2 per unit of risk. If you would invest 584.00 in Cemex SAB de on November 29, 2024 and sell it today you would earn a total of 62.00 from holding Cemex SAB de or generate 10.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cemex SAB de vs. Anhui Conch Cement
Performance |
| Timeline |
| Cemex SAB de |
| Anhui Conch Cement |
Cemex SAB and Anhui Conch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cemex SAB and Anhui Conch
The main advantage of trading using opposite Cemex SAB and Anhui Conch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cemex SAB position performs unexpectedly, Anhui Conch 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 Anhui Conch will offset losses from the drop in Anhui Conch's long position.| Cemex SAB vs. Martin Marietta Materials | Cemex SAB vs. CRH PLC ADR | Cemex SAB vs. Eagle Materials | Cemex SAB vs. United States Lime |
| Anhui Conch vs. Buzzi Unicem SpA | Anhui Conch vs. Wienerberger Baustoffindustrie | Anhui Conch vs. Lafargeholcim Ltd ADR | Anhui Conch vs. HeidelbergCement AG ADR |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |