Correlation Between Estee Lauder and CEMEX
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By analyzing existing cross correlation between Estee Lauder Companies and CEMEX 52 17 SEP 30, you can compare the effects of market volatilities on Estee Lauder and CEMEX 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 Estee Lauder with a short position of CEMEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Estee Lauder and CEMEX.
Diversification Opportunities for Estee Lauder and CEMEX
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Estee and CEMEX is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Estee Lauder Companies and CEMEX 52 17 SEP 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEMEX 52 17 and Estee Lauder 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 Estee Lauder Companies are associated (or correlated) with CEMEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEMEX 52 17 has no effect on the direction of Estee Lauder i.e., Estee Lauder and CEMEX go up and down completely randomly.
Pair Corralation between Estee Lauder and CEMEX
Allowing for the 90-day total investment horizon Estee Lauder Companies is expected to generate 1.03 times more return on investment than CEMEX. However, Estee Lauder is 1.03 times more volatile than CEMEX 52 17 SEP 30. It trades about 0.17 of its potential returns per unit of risk. CEMEX 52 17 SEP 30 is currently generating about -0.39 per unit of risk. If you would invest 6,626 in Estee Lauder Companies on September 2, 2024 and sell it today you would earn a total of 586.00 from holding Estee Lauder Companies or generate 8.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 28.57% |
| Values | Daily Returns |
Estee Lauder Companies vs. CEMEX 52 17 SEP 30
Performance |
| Timeline |
| Estee Lauder Companies |
| CEMEX 52 17 |
Estee Lauder and CEMEX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Estee Lauder and CEMEX
The main advantage of trading using opposite Estee Lauder and CEMEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Estee Lauder position performs unexpectedly, CEMEX 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 CEMEX will offset losses from the drop in CEMEX's long position.| Estee Lauder vs. Honest Company | Estee Lauder vs. Hims Hers Health | Estee Lauder vs. Procter Gamble | Estee Lauder vs. Coty Inc |
| CEMEX vs. Estee Lauder Companies | CEMEX vs. Canlan Ice Sports | CEMEX vs. Playtika Holding Corp | CEMEX vs. Church Dwight |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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