Correlation Between Cia De and Sacyr SA

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

By analyzing existing cross correlation between Cia de Distribucion and Sacyr SA, you can compare the effects of market volatilities on Cia De and Sacyr SA 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 Cia De with a short position of Sacyr SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cia De and Sacyr SA.

Diversification Opportunities for Cia De and Sacyr SA

-0.72

Correlation Coefficient

Cia De  Sacyr SA

Pay attention - limited upside

The 3 months correlation between Cia and Sacyr is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Cia de Distribucion and Sacyr SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sacyr SA and Cia De 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 Cia de Distribucion are associated (or correlated) with Sacyr SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sacyr SA has no effect on the direction of Cia De i.e., Cia De and Sacyr SA go up and down completely randomly.

Pair Corralation between Cia De and Sacyr SA

Assuming the 90 days trading horizon Cia de Distribucion is expected to under-perform the Sacyr SA. In addition to that, Cia De is 1.22 times more volatile than Sacyr SA. It trades about -0.1 of its total potential returns per unit of risk. Sacyr SA is currently generating about 0.21 per unit of volatility. If you would invest  309.00  in Sacyr SA on April 23, 2025 and sell it today you would earn a total of  44.00  from holding Sacyr SA or generate 14.24% return on investment over 90 days.

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

Cia de Distribucion  vs.  Sacyr SA

Cia de Distribucion

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cia de Distribucion has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Sacyr SA

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Sacyr SA are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Sacyr SA exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cia De and Sacyr SA

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

The idea behind Cia de Distribucion and Sacyr SA 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.