Correlation Between Braskem SA and Anheuser Busch
Can any of the company-specific risk be diversified away by investing in both Braskem SA and Anheuser Busch 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 Anheuser Busch 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 Anheuser Busch Inbev, you can compare the effects of market volatilities on Braskem SA and Anheuser Busch 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 Anheuser Busch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Braskem SA and Anheuser Busch.
Diversification Opportunities for Braskem SA and Anheuser Busch
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Braskem and Anheuser is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Braskem SA Class and Anheuser Busch Inbev in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anheuser Busch Inbev 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 Anheuser Busch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anheuser Busch Inbev has no effect on the direction of Braskem SA i.e., Braskem SA and Anheuser Busch go up and down completely randomly.
Pair Corralation between Braskem SA and Anheuser Busch
Considering the 90-day investment horizon Braskem SA Class is expected to under-perform the Anheuser Busch. In addition to that, Braskem SA is 1.72 times more volatile than Anheuser Busch Inbev. It trades about -0.32 of its total potential returns per unit of risk. Anheuser Busch Inbev is currently generating about -0.46 per unit of volatility. If you would invest 6,291 in Anheuser Busch Inbev on August 31, 2024 and sell it today you would lose (883.00) from holding Anheuser Busch Inbev or give up 14.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Braskem SA Class vs. Anheuser Busch Inbev
Performance |
| Timeline |
| Braskem SA Class |
| Anheuser Busch Inbev |
Braskem SA and Anheuser Busch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Braskem SA and Anheuser Busch
The main advantage of trading using opposite Braskem SA and Anheuser Busch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Braskem SA position performs unexpectedly, Anheuser Busch 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 Anheuser Busch will offset losses from the drop in Anheuser Busch's long position.| Braskem SA vs. Huntsman | Braskem SA vs. AdvanSix | Braskem SA vs. Tronox Holdings PLC | Braskem SA vs. Celanese |
| Anheuser Busch vs. Boston Beer | Anheuser Busch vs. Molson Coors Beverage | Anheuser Busch vs. Heineken NV | Anheuser Busch vs. Ambev SA ADR |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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