Correlation Between Braskem SA and 06406RAV9
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By analyzing existing cross correlation between Braskem SA Class and BK 105 15 OCT 26, you can compare the effects of market volatilities on Braskem SA and 06406RAV9 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 06406RAV9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Braskem SA and 06406RAV9.
Diversification Opportunities for Braskem SA and 06406RAV9
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Braskem and 06406RAV9 is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Braskem SA Class and BK 105 15 OCT 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BK 105 15 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 06406RAV9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BK 105 15 has no effect on the direction of Braskem SA i.e., Braskem SA and 06406RAV9 go up and down completely randomly.
Pair Corralation between Braskem SA and 06406RAV9
Considering the 90-day investment horizon Braskem SA Class is expected to under-perform the 06406RAV9. In addition to that, Braskem SA is 1.82 times more volatile than BK 105 15 OCT 26. It trades about -0.25 of its total potential returns per unit of risk. BK 105 15 OCT 26 is currently generating about -0.21 per unit of volatility. If you would invest 9,356 in BK 105 15 OCT 26 on September 4, 2024 and sell it today you would lose (535.00) from holding BK 105 15 OCT 26 or give up 5.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Braskem SA Class vs. BK 105 15 OCT 26
Performance |
| Timeline |
| Braskem SA Class |
| BK 105 15 |
Braskem SA and 06406RAV9 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Braskem SA and 06406RAV9
The main advantage of trading using opposite Braskem SA and 06406RAV9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Braskem SA position performs unexpectedly, 06406RAV9 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 06406RAV9 will offset losses from the drop in 06406RAV9's long position.| Braskem SA vs. Valhi Inc | Braskem SA vs. Huntsman | Braskem SA vs. Lsb Industries | Braskem SA vs. Westlake Chemical Partners |
| 06406RAV9 vs. AEP TEX INC | 06406RAV9 vs. US BANK NATIONAL | 06406RAV9 vs. MetLife | 06406RAV9 vs. Brera Holdings 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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