Correlation Between Cemex SAB and Constellium
Can any of the company-specific risk be diversified away by investing in both Cemex SAB and Constellium 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 Cemex SAB and Constellium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cemex SAB de and Constellium Nv, you can compare the effects of market volatilities on Cemex SAB and Constellium 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 Cemex SAB with a short position of Constellium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cemex SAB and Constellium.
Diversification Opportunities for Cemex SAB and Constellium
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cemex and Constellium is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Cemex SAB de and Constellium Nv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Constellium Nv and Cemex 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 Cemex SAB de are associated (or correlated) with Constellium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Constellium Nv has no effect on the direction of Cemex SAB i.e., Cemex SAB and Constellium go up and down completely randomly.
Pair Corralation between Cemex SAB and Constellium
Allowing for the 90-day total investment horizon Cemex SAB de is expected to generate 0.64 times more return on investment than Constellium. However, Cemex SAB de is 1.57 times less risky than Constellium. It trades about 0.36 of its potential returns per unit of risk. Constellium Nv is currently generating about 0.15 per unit of risk. If you would invest 609.00 in Cemex SAB de on May 3, 2025 and sell it today you would earn a total of 261.00 from holding Cemex SAB de or generate 42.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Cemex SAB de vs. Constellium Nv
Performance |
Timeline |
Cemex SAB de |
Constellium Nv |
Cemex SAB and Constellium Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cemex SAB and Constellium
The main advantage of trading using opposite Cemex SAB and Constellium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cemex SAB position performs unexpectedly, Constellium 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 Constellium will offset losses from the drop in Constellium's long position.Cemex SAB vs. Vulcan Materials | Cemex SAB vs. Martin Marietta Materials | Cemex SAB vs. Eagle Materials | Cemex SAB vs. CRH PLC ADR |
Constellium vs. Kaiser Aluminum | Constellium vs. Century Aluminum | Constellium vs. Orion Engineered Carbons | Constellium vs. Tronox Holdings PLC |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
AI Portfolio Prophet Use AI to generate optimal portfolios and find profitable investment opportunities | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |