Correlation Between Braskem SA and Accretion Acquisition
Can any of the company-specific risk be diversified away by investing in both Braskem SA and Accretion Acquisition 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 Accretion Acquisition 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 Accretion Acquisition Corp, you can compare the effects of market volatilities on Braskem SA and Accretion Acquisition 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 Accretion Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Braskem SA and Accretion Acquisition.
Diversification Opportunities for Braskem SA and Accretion Acquisition
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Braskem and Accretion is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Braskem SA Class and Accretion Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accretion Acquisition 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 Accretion Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accretion Acquisition has no effect on the direction of Braskem SA i.e., Braskem SA and Accretion Acquisition go up and down completely randomly.
Pair Corralation between Braskem SA and Accretion Acquisition
If you would invest 1,055 in Accretion Acquisition Corp on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Accretion Acquisition Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Braskem SA Class vs. Accretion Acquisition Corp
Performance |
| Timeline |
| Braskem SA Class |
| Accretion Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Braskem SA and Accretion Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Braskem SA and Accretion Acquisition
The main advantage of trading using opposite Braskem SA and Accretion Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Braskem SA position performs unexpectedly, Accretion Acquisition 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 Accretion Acquisition will offset losses from the drop in Accretion Acquisition's long position.| Braskem SA vs. Valhi Inc | Braskem SA vs. Huntsman | Braskem SA vs. Lsb Industries | Braskem SA vs. Westlake Chemical Partners |
| Accretion Acquisition vs. Alaska Air Group | Accretion Acquisition vs. Pentair PLC | Accretion Acquisition vs. Jacobs Solutions | Accretion Acquisition vs. Westinghouse Air Brake |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |