Correlation Between Braskem SA and Achillion Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Braskem SA and Achillion Pharmaceuticals 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 Braskem SA and Achillion Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Braskem SA Class and Achillion Pharmaceuticals, you can compare the effects of market volatilities on Braskem SA and Achillion Pharmaceuticals 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 Braskem SA with a short position of Achillion Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Braskem SA and Achillion Pharmaceuticals.
Diversification Opportunities for Braskem SA and Achillion Pharmaceuticals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Braskem and Achillion is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Braskem SA Class and Achillion Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Achillion Pharmaceuticals and Braskem SA 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 Braskem SA Class are associated (or correlated) with Achillion Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Achillion Pharmaceuticals has no effect on the direction of Braskem SA i.e., Braskem SA and Achillion Pharmaceuticals go up and down completely randomly.
Pair Corralation between Braskem SA and Achillion Pharmaceuticals
If you would invest (100.00) in Achillion Pharmaceuticals on September 1, 2024 and sell it today you would earn a total of 100.00 from holding Achillion Pharmaceuticals or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Braskem SA Class vs. Achillion Pharmaceuticals
Performance |
| Timeline |
| Braskem SA Class |
| Achillion Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Braskem SA and Achillion Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Braskem SA and Achillion Pharmaceuticals
The main advantage of trading using opposite Braskem SA and Achillion Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Braskem SA position performs unexpectedly, Achillion Pharmaceuticals 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 Achillion Pharmaceuticals will offset losses from the drop in Achillion Pharmaceuticals' long position.| Braskem SA vs. Valhi Inc | Braskem SA vs. Huntsman | Braskem SA vs. Lsb Industries | Braskem SA vs. Westlake Chemical Partners |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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