Correlation Between James Hardie and Cemex SAB

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

By analyzing existing cross correlation between James Hardie Industries and Cemex SAB de, you can compare the effects of market volatilities on James Hardie and Cemex SAB 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 James Hardie with a short position of Cemex SAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of James Hardie and Cemex SAB.

Diversification Opportunities for James Hardie and Cemex SAB

0.51

Correlation Coefficient

James Hardie  Cemex SAB

Very weak diversification

The 3 months correlation between James and Cemex is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding James Hardie Industries and Cemex SAB de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cemex SAB de and James Hardie 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 James Hardie Industries are associated (or correlated) with Cemex SAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cemex SAB de has no effect on the direction of James Hardie i.e., James Hardie and Cemex SAB go up and down completely randomly.

Pair Corralation between James Hardie and Cemex SAB

Considering the 90-day investment horizon James Hardie is expected to generate 3.02 times less return on investment than Cemex SAB. In addition to that, James Hardie is 1.48 times more volatile than Cemex SAB de. It trades about 0.07 of its total potential returns per unit of risk. Cemex SAB de is currently generating about 0.3 per unit of volatility. If you would invest  617.00  in Cemex SAB de on May 6, 2025 and sell it today you would earn a total of  223.00  from holding Cemex SAB de or generate 36.14% return on investment over 90 days.

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

James Hardie Industries  vs.  Cemex SAB de

James Hardie Industries

Risk-Adjusted Performance

Insignificant

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

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 23 (%) 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.

Pair Trading with James Hardie and Cemex SAB

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

The idea behind James Hardie Industries and Cemex SAB de 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.