Correlation Between Industrias Penoles and James Hardie
Can any of the company-specific risk be diversified away by investing in both Industrias Penoles and James Hardie 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 Industrias Penoles and James Hardie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Industrias Penoles Sab and James Hardie Industries, you can compare the effects of market volatilities on Industrias Penoles and James Hardie 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 Industrias Penoles with a short position of James Hardie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrias Penoles and James Hardie.
Diversification Opportunities for Industrias Penoles and James Hardie
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Industrias and James is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Industrias Penoles Sab and James Hardie Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on James Hardie Industries and Industrias Penoles 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 Industrias Penoles Sab are associated (or correlated) with James Hardie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of James Hardie Industries has no effect on the direction of Industrias Penoles i.e., Industrias Penoles and James Hardie go up and down completely randomly.
Pair Corralation between Industrias Penoles and James Hardie
Assuming the 90 days horizon Industrias Penoles is expected to generate 1.05 times less return on investment than James Hardie. But when comparing it to its historical volatility, Industrias Penoles Sab is 1.1 times less risky than James Hardie. It trades about 0.08 of its potential returns per unit of risk. James Hardie Industries is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,786 in James Hardie Industries on October 6, 2025 and sell it today you would earn a total of 264.00 from holding James Hardie Industries or generate 14.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrias Penoles Sab vs. James Hardie Industries
Performance |
| Timeline |
| Industrias Penoles Sab |
| James Hardie Industries |
Industrias Penoles and James Hardie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrias Penoles and James Hardie
The main advantage of trading using opposite Industrias Penoles and James Hardie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrias Penoles position performs unexpectedly, James Hardie 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 James Hardie will offset losses from the drop in James Hardie's long position.| Industrias Penoles vs. Anhui Conch Cement | Industrias Penoles vs. Boliden AB ADR | Industrias Penoles vs. Nitto Denko | Industrias Penoles vs. James Hardie Industries |
| James Hardie vs. Anhui Conch Cement | James Hardie vs. Anhui Conch Cement | James Hardie vs. CEMEX SAB de | James Hardie vs. Industrias Penoles Sab |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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