Correlation Between Braskem SA and TNEMAK
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By analyzing existing cross correlation between Braskem SA Class and TNEMAK 3625 28 JUN 31, you can compare the effects of market volatilities on Braskem SA and TNEMAK 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 TNEMAK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Braskem SA and TNEMAK.
Diversification Opportunities for Braskem SA and TNEMAK
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Braskem and TNEMAK is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Braskem SA Class and TNEMAK 3625 28 JUN 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TNEMAK 3625 28 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 TNEMAK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TNEMAK 3625 28 has no effect on the direction of Braskem SA i.e., Braskem SA and TNEMAK go up and down completely randomly.
Pair Corralation between Braskem SA and TNEMAK
Considering the 90-day investment horizon Braskem SA Class is expected to under-perform the TNEMAK. In addition to that, Braskem SA is 2.04 times more volatile than TNEMAK 3625 28 JUN 31. It trades about -0.06 of its total potential returns per unit of risk. TNEMAK 3625 28 JUN 31 is currently generating about 0.12 per unit of volatility. If you would invest 7,751 in TNEMAK 3625 28 JUN 31 on September 5, 2024 and sell it today you would earn a total of 362.00 from holding TNEMAK 3625 28 JUN 31 or generate 4.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 23.2% |
| Values | Daily Returns |
Braskem SA Class vs. TNEMAK 3625 28 JUN 31
Performance |
| Timeline |
| Braskem SA Class |
| TNEMAK 3625 28 |
Braskem SA and TNEMAK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Braskem SA and TNEMAK
The main advantage of trading using opposite Braskem SA and TNEMAK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Braskem SA position performs unexpectedly, TNEMAK 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 TNEMAK will offset losses from the drop in TNEMAK's long position.| Braskem SA vs. Valhi Inc | Braskem SA vs. Huntsman | Braskem SA vs. Lsb Industries | Braskem SA vs. Westlake Chemical Partners |
| TNEMAK vs. Skechers USA | TNEMAK vs. Chemours Co | TNEMAK vs. Braskem SA Class | TNEMAK vs. Ralph Lauren Corp |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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