Correlation Between CEMEX SAB and Xinyi Glass
Can any of the company-specific risk be diversified away by investing in both CEMEX SAB and Xinyi Glass 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 Xinyi Glass 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 Xinyi Glass Holdings, you can compare the effects of market volatilities on CEMEX SAB and Xinyi Glass 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 Xinyi Glass. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEMEX SAB and Xinyi Glass.
Diversification Opportunities for CEMEX SAB and Xinyi Glass
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CEMEX and Xinyi is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding CEMEX SAB de and Xinyi Glass Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinyi Glass Holdings 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 Xinyi Glass. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinyi Glass Holdings has no effect on the direction of CEMEX SAB i.e., CEMEX SAB and Xinyi Glass go up and down completely randomly.
Pair Corralation between CEMEX SAB and Xinyi Glass
Assuming the 90 days horizon CEMEX SAB de is expected to under-perform the Xinyi Glass. In addition to that, CEMEX SAB is 1.25 times more volatile than Xinyi Glass Holdings. It trades about -0.01 of its total potential returns per unit of risk. Xinyi Glass Holdings is currently generating about 0.01 per unit of volatility. If you would invest 1,870 in Xinyi Glass Holdings on November 5, 2024 and sell it today you would lose (2.00) from holding Xinyi Glass Holdings or give up 0.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CEMEX SAB de vs. Xinyi Glass Holdings
Performance |
| Timeline |
| CEMEX SAB de |
| Xinyi Glass Holdings |
CEMEX SAB and Xinyi Glass Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CEMEX SAB and Xinyi Glass
The main advantage of trading using opposite CEMEX SAB and Xinyi Glass positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CEMEX SAB position performs unexpectedly, Xinyi Glass 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 Xinyi Glass will offset losses from the drop in Xinyi Glass' long position.| CEMEX SAB vs. Vulcan Materials | CEMEX SAB vs. Martin Marietta Materials | CEMEX SAB vs. Eagle Materials | CEMEX SAB vs. CRH PLC ADR |
| Xinyi Glass vs. Xinyi Glass Holdings | Xinyi Glass vs. CEMATRIX | Xinyi Glass vs. Anhui Conch Cement | Xinyi Glass vs. Basanite |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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