Correlation Between Gruma SAB and CEMEX SAB
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By analyzing existing cross correlation between Gruma SAB de and CEMEX SAB de, you can compare the effects of market volatilities on Gruma SAB and CEMEX SAB 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 Gruma SAB with a short position of CEMEX SAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gruma SAB and CEMEX SAB.
Diversification Opportunities for Gruma SAB and CEMEX SAB
Very weak diversification
The 3 months correlation between Gruma and CEMEX is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Gruma SAB de and CEMEX SAB de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEMEX SAB de and Gruma 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 Gruma SAB de are associated (or correlated) with CEMEX SAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEMEX SAB de has no effect on the direction of Gruma SAB i.e., Gruma SAB and CEMEX SAB go up and down completely randomly.
Pair Corralation between Gruma SAB and CEMEX SAB
Assuming the 90 days trading horizon Gruma SAB is expected to generate 2.15 times less return on investment than CEMEX SAB. But when comparing it to its historical volatility, Gruma SAB de is 2.19 times less risky than CEMEX SAB. It trades about 0.33 of its potential returns per unit of risk. CEMEX SAB de is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 1,113 in CEMEX SAB de on November 18, 2024 and sell it today you would earn a total of 245.00 from holding CEMEX SAB de or generate 22.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gruma SAB de vs. CEMEX SAB de
Performance |
| Timeline |
| Gruma SAB de |
| CEMEX SAB de |
Gruma SAB and CEMEX SAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gruma SAB and CEMEX SAB
The main advantage of trading using opposite Gruma SAB and CEMEX SAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gruma SAB position performs unexpectedly, CEMEX SAB 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 SAB will offset losses from the drop in CEMEX SAB's long position.| Gruma SAB vs. Alfa SAB de | Gruma SAB vs. Grupo Financiero Banorte | Gruma SAB vs. Fomento Econmico Mexicano | Gruma SAB vs. Grupo Mxico SAB |
| CEMEX SAB vs. Grupo Mxico SAB | CEMEX SAB vs. Alfa SAB de | CEMEX SAB vs. Grupo Financiero Banorte | CEMEX SAB vs. Fomento Econmico Mexicano |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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