Correlation Between Holcim and Anhui Conch

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

By analyzing existing cross correlation between Holcim and Anhui Conch Cement, you can compare the effects of market volatilities on Holcim and Anhui Conch 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 Holcim with a short position of Anhui Conch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holcim and Anhui Conch.

Diversification Opportunities for Holcim and Anhui Conch

-0.64

Correlation Coefficient

Holcim  Anhui Conch

Excellent diversification

The 3 months correlation between Holcim and Anhui is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Holcim and Anhui Conch Cement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Conch Cement and Holcim 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 Holcim are associated (or correlated) with Anhui Conch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Conch Cement has no effect on the direction of Holcim i.e., Holcim and Anhui Conch go up and down completely randomly.

Pair Corralation between Holcim and Anhui Conch

Assuming the 90 days horizon Holcim is expected to under-perform the Anhui Conch. In addition to that, Holcim is 2.49 times more volatile than Anhui Conch Cement. It trades about -0.05 of its total potential returns per unit of risk. Anhui Conch Cement is currently generating about 0.06 per unit of volatility. If you would invest  1,327  in Anhui Conch Cement on May 7, 2025 and sell it today you would earn a total of  109.00  from holding Anhui Conch Cement or generate 8.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

Holcim  vs.  Anhui Conch Cement

Holcim

Risk-Adjusted Performance

Weakest

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

Anhui Conch Cement

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Anhui Conch Cement are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak technical indicators, Anhui Conch may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Holcim and Anhui Conch

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

The idea behind Holcim and Anhui Conch Cement 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.