Correlation Between Adbri and CEMEX SAB

Can any of the company-specific risk be diversified away by investing in both Adbri and CEMEX SAB 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 Adbri and CEMEX SAB into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Adbri Limited and CEMEX SAB de, you can compare the effects of market volatilities on Adbri 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 Adbri with a short position of CEMEX SAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adbri and CEMEX SAB.

Diversification Opportunities for Adbri and CEMEX SAB

0.0

Correlation Coefficient

Adbri  CEMEX SAB

Pay attention - limited upside

The 3 months correlation between Adbri and CEMEX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Adbri Limited 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 Adbri 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 Adbri Limited 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 Adbri i.e., Adbri and CEMEX SAB go up and down completely randomly.

Pair Corralation between Adbri and CEMEX SAB

If you would invest  205.00  in Adbri Limited on September 3, 2024 and sell it today you would earn a total of  0.00  from holding Adbri Limited or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Adbri Limited  vs.  CEMEX SAB de

Adbri Limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Adbri Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Adbri is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

CEMEX SAB de

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CEMEX SAB de has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Adbri and CEMEX SAB

The main advantage of trading using opposite Adbri and CEMEX SAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adbri 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.

The idea behind Adbri Limited and CEMEX SAB de pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Valuation module to check real value of public entities based on technical and fundamental data.