Correlation Between Prosegur and CompX International

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

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

Diversification Opportunities for Prosegur and CompX International

0.07

Correlation Coefficient

Prosegur  CompX International

Significant diversification

The 3 months correlation between Prosegur and CompX is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Prosegur and CompX International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompX International and Prosegur 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 Prosegur are associated (or correlated) with CompX International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CompX International has no effect on the direction of Prosegur i.e., Prosegur and CompX International go up and down completely randomly.

Pair Corralation between Prosegur and CompX International

Assuming the 90 days trading horizon Prosegur is expected to generate 0.72 times more return on investment than CompX International. However, Prosegur is 1.39 times less risky than CompX International. It trades about 0.05 of its potential returns per unit of risk. CompX International is currently generating about -0.05 per unit of risk. If you would invest  244.00  in Prosegur on May 2, 2025 and sell it today you would earn a total of  12.00  from holding Prosegur or generate 4.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	93.85%
Values	Daily Returns

Prosegur  vs.  CompX International

Prosegur

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Prosegur are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Prosegur is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

CompX International

Risk-Adjusted Performance

Very Weak

Over the last 90 days CompX International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting performance, the Stock's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Prosegur and CompX International

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

The idea behind Prosegur and CompX International 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.