Correlation Between Braskem SA and KINDER
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By analyzing existing cross correlation between Braskem SA Class and KINDER MORGAN INC, you can compare the effects of market volatilities on Braskem SA and KINDER 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 KINDER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Braskem SA and KINDER.
Diversification Opportunities for Braskem SA and KINDER
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Braskem and KINDER is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Braskem SA Class and KINDER MORGAN INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KINDER MORGAN INC 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 KINDER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KINDER MORGAN INC has no effect on the direction of Braskem SA i.e., Braskem SA and KINDER go up and down completely randomly.
Pair Corralation between Braskem SA and KINDER
Considering the 90-day investment horizon Braskem SA Class is expected to generate 6.38 times more return on investment than KINDER. However, Braskem SA is 6.38 times more volatile than KINDER MORGAN INC. It trades about 0.23 of its potential returns per unit of risk. KINDER MORGAN INC is currently generating about 0.15 per unit of risk. If you would invest 378.00 in Braskem SA Class on November 9, 2024 and sell it today you would earn a total of 78.00 from holding Braskem SA Class or generate 20.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Braskem SA Class vs. KINDER MORGAN INC
Performance |
| Timeline |
| Braskem SA Class |
| KINDER MORGAN INC |
Braskem SA and KINDER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Braskem SA and KINDER
The main advantage of trading using opposite Braskem SA and KINDER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Braskem SA position performs unexpectedly, KINDER 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 KINDER will offset losses from the drop in KINDER's long position.| Braskem SA vs. Valhi Inc | Braskem SA vs. Huntsman | Braskem SA vs. Lsb Industries | Braskem SA vs. Westlake Chemical Partners |
| KINDER vs. WT Offshore | KINDER vs. Marfrig Global Foods | KINDER vs. Lifeway Foods | KINDER vs. Austevoll Seafood ASA |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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