Correlation Between Banco Ita and CEMEX SAB

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

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

Diversification Opportunities for Banco Ita and CEMEX SAB

0.0

Correlation Coefficient

Banco Ita  CEMEX SAB

Pay attention - limited upside

The 3 months correlation between Banco and CEMEX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Banco Ita Chile 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 Banco Ita 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 Banco Ita Chile 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 Banco Ita i.e., Banco Ita and CEMEX SAB go up and down completely randomly.

Pair Corralation between Banco Ita and CEMEX SAB

If you would invest  57.00  in CEMEX SAB de on December 27, 2024 and sell it today you would earn a total of  3.00  from holding CEMEX SAB de or generate 5.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Banco Ita Chile  vs.  CEMEX SAB de

Banco Ita Chile

Risk-Adjusted Performance

Very Weak

Over the last 90 days Banco Ita Chile has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental indicators, Banco Ita is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

CEMEX SAB de

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in CEMEX SAB de are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, CEMEX SAB may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Banco Ita and CEMEX SAB

The main advantage of trading using opposite Banco Ita and CEMEX SAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Ita 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 Banco Ita Chile 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.