Correlation Between Braskem SA and Usio
Can any of the company-specific risk be diversified away by investing in both Braskem SA and Usio 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 Usio 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 Usio Inc, you can compare the effects of market volatilities on Braskem SA and Usio 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 Usio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Braskem SA and Usio.
Diversification Opportunities for Braskem SA and Usio
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Braskem and Usio is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Braskem SA Class and Usio Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Usio 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 Usio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Usio Inc has no effect on the direction of Braskem SA i.e., Braskem SA and Usio go up and down completely randomly.
Pair Corralation between Braskem SA and Usio
Considering the 90-day investment horizon Braskem SA Class is expected to under-perform the Usio. But the stock apears to be less risky and, when comparing its historical volatility, Braskem SA Class is 1.1 times less risky than Usio. The stock trades about -0.34 of its potential returns per unit of risk. The Usio Inc is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 138.00 in Usio Inc on September 1, 2024 and sell it today you would earn a total of 13.00 from holding Usio Inc or generate 9.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Braskem SA Class vs. Usio Inc
Performance |
| Timeline |
| Braskem SA Class |
| Usio Inc |
Braskem SA and Usio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Braskem SA and Usio
The main advantage of trading using opposite Braskem SA and Usio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Braskem SA position performs unexpectedly, Usio 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 Usio will offset losses from the drop in Usio's long position.| Braskem SA vs. Valhi Inc | Braskem SA vs. Huntsman | Braskem SA vs. Lsb Industries | Braskem SA vs. Westlake Chemical Partners |
| Usio vs. Appen Limited | Usio vs. Value Exchange International | Usio vs. Appen Limited | Usio vs. Deveron 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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