Correlation Between Promotora and CEMEX SAB
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By analyzing existing cross correlation between Promotora y Operadora and CEMEX SAB de, you can compare the effects of market volatilities on Promotora 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 Promotora with a short position of CEMEX SAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Promotora and CEMEX SAB.
Diversification Opportunities for Promotora and CEMEX SAB
Good diversification
The 3 months correlation between Promotora and CEMEX is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Promotora y Operadora 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 Promotora 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 Promotora y Operadora 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 Promotora i.e., Promotora and CEMEX SAB go up and down completely randomly.
Pair Corralation between Promotora and CEMEX SAB
Assuming the 90 days trading horizon Promotora is expected to generate 1.97 times less return on investment than CEMEX SAB. But when comparing it to its historical volatility, Promotora y Operadora is 1.85 times less risky than CEMEX SAB. It trades about 0.09 of its potential returns per unit of risk. CEMEX SAB de is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,058 in CEMEX SAB de on August 30, 2024 and sell it today you would earn a total of 60.00 from holding CEMEX SAB de or generate 5.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Promotora y Operadora vs. CEMEX SAB de
Performance |
| Timeline |
| Promotora y Operadora |
| CEMEX SAB de |
Promotora and CEMEX SAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Promotora and CEMEX SAB
The main advantage of trading using opposite Promotora and CEMEX SAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Promotora 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.| Promotora vs. Grupo Profuturo SAB | Promotora vs. Corporacin Inmobiliaria Vesta | Promotora vs. Financiera Independencia SAB | Promotora vs. The Select Sector |
| CEMEX SAB vs. Martin Marietta Materials | CEMEX SAB vs. Grupo Cementos de | CEMEX SAB vs. Grupo Lamosa SAB |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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