Correlation Between Cementos Pacasmayo and Mangazeya Mining

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

By analyzing existing cross correlation between Cementos Pacasmayo SAA and Mangazeya Mining, you can compare the effects of market volatilities on Cementos Pacasmayo and Mangazeya Mining 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 Cementos Pacasmayo with a short position of Mangazeya Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cementos Pacasmayo and Mangazeya Mining.

Diversification Opportunities for Cementos Pacasmayo and Mangazeya Mining

0.0

Correlation Coefficient

Cementos Pacasmayo  Mangazeya Mining

Pay attention - limited upside

The 3 months correlation between Cementos and Mangazeya is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cementos Pacasmayo SAA and Mangazeya Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mangazeya Mining and Cementos Pacasmayo 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 Cementos Pacasmayo SAA are associated (or correlated) with Mangazeya Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mangazeya Mining has no effect on the direction of Cementos Pacasmayo i.e., Cementos Pacasmayo and Mangazeya Mining go up and down completely randomly.

Pair Corralation between Cementos Pacasmayo and Mangazeya Mining

If you would invest  511.00  in Cementos Pacasmayo SAA on September 15, 2024 and sell it today you would earn a total of  87.00  from holding Cementos Pacasmayo SAA or generate 17.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Cementos Pacasmayo SAA  vs.  Mangazeya Mining

Cementos Pacasmayo SAA

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cementos Pacasmayo SAA are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, Cementos Pacasmayo exhibited solid returns over the last few months and may actually be approaching a breakup point.

Mangazeya Mining

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Cementos Pacasmayo and Mangazeya Mining

The main advantage of trading using opposite Cementos Pacasmayo and Mangazeya Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cementos Pacasmayo position performs unexpectedly, Mangazeya Mining 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 Mangazeya Mining will offset losses from the drop in Mangazeya Mining's long position.

The idea behind Cementos Pacasmayo SAA and Mangazeya Mining 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.