Correlation Between Enphase Energy and Cemex SAB
Can any of the company-specific risk be diversified away by investing in both Enphase Energy 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 Enphase Energy and Cemex SAB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enphase Energy and Cemex SAB de, you can compare the effects of market volatilities on Enphase Energy 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 Enphase Energy with a short position of Cemex SAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enphase Energy and Cemex SAB.
Diversification Opportunities for Enphase Energy and Cemex SAB
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Enphase and Cemex is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Enphase Energy 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 Enphase Energy 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 Enphase Energy 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 Enphase Energy i.e., Enphase Energy and Cemex SAB go up and down completely randomly.
Pair Corralation between Enphase Energy and Cemex SAB
Given the investment horizon of 90 days Enphase Energy is expected to generate 4.02 times more return on investment than Cemex SAB. However, Enphase Energy is 4.02 times more volatile than Cemex SAB de. It trades about 0.2 of its potential returns per unit of risk. Cemex SAB de is currently generating about 0.47 per unit of risk. If you would invest 3,191 in Enphase Energy on June 6, 2025 and sell it today you would earn a total of 517.00 from holding Enphase Energy or generate 16.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enphase Energy vs. Cemex SAB de
Performance |
| Timeline |
| Enphase Energy |
| Cemex SAB de |
Enphase Energy and Cemex SAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enphase Energy and Cemex SAB
The main advantage of trading using opposite Enphase Energy and Cemex SAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enphase Energy 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.| Enphase Energy vs. SolarEdge Technologies | Enphase Energy vs. First Solar | Enphase Energy vs. Sunrun Inc | Enphase Energy vs. Canadian Solar |
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Check out your portfolio center.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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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