Correlation Between Braskem SA and SOUTHERN
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By analyzing existing cross correlation between Braskem SA Class and SOUTHERN CALIF EDISON, you can compare the effects of market volatilities on Braskem SA and SOUTHERN 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 SOUTHERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Braskem SA and SOUTHERN.
Diversification Opportunities for Braskem SA and SOUTHERN
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Braskem and SOUTHERN is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Braskem SA Class and SOUTHERN CALIF EDISON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOUTHERN CALIF EDISON 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 SOUTHERN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOUTHERN CALIF EDISON has no effect on the direction of Braskem SA i.e., Braskem SA and SOUTHERN go up and down completely randomly.
Pair Corralation between Braskem SA and SOUTHERN
Considering the 90-day investment horizon Braskem SA Class is expected to under-perform the SOUTHERN. In addition to that, Braskem SA is 3.05 times more volatile than SOUTHERN CALIF EDISON. It trades about -0.24 of its total potential returns per unit of risk. SOUTHERN CALIF EDISON is currently generating about 0.22 per unit of volatility. If you would invest 10,327 in SOUTHERN CALIF EDISON on September 12, 2024 and sell it today you would earn a total of 217.00 from holding SOUTHERN CALIF EDISON or generate 2.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 61.9% |
| Values | Daily Returns |
Braskem SA Class vs. SOUTHERN CALIF EDISON
Performance |
| Timeline |
| Braskem SA Class |
| SOUTHERN CALIF EDISON |
Braskem SA and SOUTHERN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Braskem SA and SOUTHERN
The main advantage of trading using opposite Braskem SA and SOUTHERN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Braskem SA position performs unexpectedly, SOUTHERN 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 SOUTHERN will offset losses from the drop in SOUTHERN's long position.| Braskem SA vs. Valhi Inc | Braskem SA vs. Huntsman | Braskem SA vs. Lsb Industries | Braskem SA vs. Westlake Chemical Partners |
| SOUTHERN vs. MACOM Technology Solutions | SOUTHERN vs. Nexstar Broadcasting Group | SOUTHERN vs. Ryanair Holdings PLC | SOUTHERN vs. ON Semiconductor |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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