Correlation Between CEMEX SAB and China National
Can any of the company-specific risk be diversified away by investing in both CEMEX SAB and China National 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 China National 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 China National Building, you can compare the effects of market volatilities on CEMEX SAB and China National 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 China National. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEMEX SAB and China National.
Diversification Opportunities for CEMEX SAB and China National
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between CEMEX and China is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding CEMEX SAB de and China National Building in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China National Building 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 China National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China National Building has no effect on the direction of CEMEX SAB i.e., CEMEX SAB and China National go up and down completely randomly.
Pair Corralation between CEMEX SAB and China National
Assuming the 90 days horizon CEMEX SAB de is expected to under-perform the China National. But the pink sheet apears to be less risky and, when comparing its historical volatility, CEMEX SAB de is 1.07 times less risky than China National. The pink sheet trades about 0.0 of its potential returns per unit of risk. The China National Building is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,089 in China National Building on November 5, 2024 and sell it today you would earn a total of 336.00 from holding China National Building or generate 16.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.06% |
| Values | Daily Returns |
CEMEX SAB de vs. China National Building
Performance |
| Timeline |
| CEMEX SAB de |
| China National Building |
CEMEX SAB and China National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CEMEX SAB and China National
The main advantage of trading using opposite CEMEX SAB and China National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CEMEX SAB position performs unexpectedly, China National 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 China National will offset losses from the drop in China National's long position.| CEMEX SAB vs. Vulcan Materials | CEMEX SAB vs. Martin Marietta Materials | CEMEX SAB vs. Eagle Materials | CEMEX SAB vs. CRH PLC ADR |
| China National vs. Anhui Conch Cement | China National vs. Buzzi Unicem SpA | China National vs. Wienerberger Baustoffindustrie | China National vs. Lafargeholcim Ltd 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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |