Correlation Between Cemex SAB and Intrepid Potash

Can any of the company-specific risk be diversified away by investing in both Cemex SAB and Intrepid Potash 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 Intrepid Potash 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 Intrepid Potash, you can compare the effects of market volatilities on Cemex SAB and Intrepid Potash 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 Intrepid Potash. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cemex SAB and Intrepid Potash.

Diversification Opportunities for Cemex SAB and Intrepid Potash

-0.78

Correlation Coefficient

Cemex SAB  Intrepid Potash

Pay attention - limited upside

The 3 months correlation between Cemex and Intrepid is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Cemex SAB de and Intrepid Potash in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intrepid Potash 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 Intrepid Potash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intrepid Potash has no effect on the direction of Cemex SAB i.e., Cemex SAB and Intrepid Potash go up and down completely randomly.

Pair Corralation between Cemex SAB and Intrepid Potash

Allowing for the 90-day total investment horizon Cemex SAB de is expected to generate 0.67 times more return on investment than Intrepid Potash. However, Cemex SAB de is 1.49 times less risky than Intrepid Potash. It trades about 0.21 of its potential returns per unit of risk. Intrepid Potash is currently generating about -0.14 per unit of risk. If you would invest  688.00  in Cemex SAB de on May 19, 2025 and sell it today you would earn a total of  165.00  from holding Cemex SAB de or generate 23.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Cemex SAB de  vs.  Intrepid Potash

Cemex SAB de

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Cemex SAB de are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Cemex SAB showed solid returns over the last few months and may actually be approaching a breakup point.

Intrepid Potash

Risk-Adjusted Performance

Weakest

Over the last 90 days Intrepid Potash has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in September 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Cemex SAB and Intrepid Potash

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

The idea behind Cemex SAB de and Intrepid Potash 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.