Correlation Between Cornerstone Strategic and Repsol SA

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

By analyzing existing cross correlation between Cornerstone Strategic Value and Repsol SA, you can compare the effects of market volatilities on Cornerstone Strategic and Repsol SA 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 Cornerstone Strategic with a short position of Repsol SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cornerstone Strategic and Repsol SA.

Diversification Opportunities for Cornerstone Strategic and Repsol SA

0.0

Correlation Coefficient

Cornerstone Strategic  Repsol SA

Pay attention - limited upside

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

Pair Corralation between Cornerstone Strategic and Repsol SA

If you would invest  712.00  in Cornerstone Strategic Value on May 18, 2025 and sell it today you would earn a total of  95.00  from holding Cornerstone Strategic Value or generate 13.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Cornerstone Strategic Value  vs.  Repsol SA

Cornerstone Strategic

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Cornerstone Strategic Value are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of very weak essential indicators, Cornerstone Strategic displayed solid returns over the last few months and may actually be approaching a breakup point.

Repsol SA

Risk-Adjusted Performance

Weakest

Over the last 90 days Repsol SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Repsol SA is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Cornerstone Strategic and Repsol SA

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

The idea behind Cornerstone Strategic Value and Repsol SA 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.