Correlation Between Braskem SA and Signature Bank
Can any of the company-specific risk be diversified away by investing in both Braskem SA and Signature Bank 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 Signature Bank 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 Signature Bank, you can compare the effects of market volatilities on Braskem SA and Signature Bank 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 Signature Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Braskem SA and Signature Bank.
Diversification Opportunities for Braskem SA and Signature Bank
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Braskem and Signature is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Braskem SA Class and Signature Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Signature Bank 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 Signature Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Signature Bank has no effect on the direction of Braskem SA i.e., Braskem SA and Signature Bank go up and down completely randomly.
Pair Corralation between Braskem SA and Signature Bank
If you would invest 1.70 in Signature Bank on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Signature Bank or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Braskem SA Class vs. Signature Bank
Performance |
| Timeline |
| Braskem SA Class |
| Signature Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Braskem SA and Signature Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Braskem SA and Signature Bank
The main advantage of trading using opposite Braskem SA and Signature Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Braskem SA position performs unexpectedly, Signature Bank 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 Signature Bank will offset losses from the drop in Signature Bank's long position.| Braskem SA vs. Valhi Inc | Braskem SA vs. Huntsman | Braskem SA vs. Lsb Industries | Braskem SA vs. Westlake Chemical Partners |
| Signature Bank vs. Primoris Services | Signature Bank vs. BOS Better Online | Signature Bank vs. Integral Ad Science | Signature Bank vs. Emerson Electric |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |