Correlation Between Braskem SA and Genesis Growth
Can any of the company-specific risk be diversified away by investing in both Braskem SA and Genesis Growth 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 Genesis Growth 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 Genesis Growth Tech, you can compare the effects of market volatilities on Braskem SA and Genesis Growth 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 Genesis Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Braskem SA and Genesis Growth.
Diversification Opportunities for Braskem SA and Genesis Growth
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Braskem and Genesis is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Braskem SA Class and Genesis Growth Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genesis Growth Tech 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 Genesis Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genesis Growth Tech has no effect on the direction of Braskem SA i.e., Braskem SA and Genesis Growth go up and down completely randomly.
Pair Corralation between Braskem SA and Genesis Growth
If you would invest 18.00 in Genesis Growth Tech on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Genesis Growth Tech or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Braskem SA Class vs. Genesis Growth Tech
Performance |
| Timeline |
| Braskem SA Class |
| Genesis Growth Tech |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Braskem SA and Genesis Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Braskem SA and Genesis Growth
The main advantage of trading using opposite Braskem SA and Genesis Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Braskem SA position performs unexpectedly, Genesis Growth 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 Genesis Growth will offset losses from the drop in Genesis Growth's long position.| Braskem SA vs. Valhi Inc | Braskem SA vs. Huntsman | Braskem SA vs. Lsb Industries | Braskem SA vs. Westlake Chemical Partners |
| Genesis Growth vs. China Clean Energy | Genesis Growth vs. Titan International | Genesis Growth vs. Torm PLC Class | Genesis Growth vs. Ironveld Plc |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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