Correlation Between Braskem SA and Accenture Plc
Can any of the company-specific risk be diversified away by investing in both Braskem SA and Accenture Plc 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 Accenture Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Braskem SA and Accenture plc, you can compare the effects of market volatilities on Braskem SA and Accenture Plc 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 Accenture Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Braskem SA and Accenture Plc.
Diversification Opportunities for Braskem SA and Accenture Plc
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Braskem and Accenture is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Braskem SA and Accenture plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accenture plc 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 are associated (or correlated) with Accenture Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accenture plc has no effect on the direction of Braskem SA i.e., Braskem SA and Accenture Plc go up and down completely randomly.
Pair Corralation between Braskem SA and Accenture Plc
Assuming the 90 days trading horizon Braskem SA is expected to under-perform the Accenture Plc. In addition to that, Braskem SA is 1.13 times more volatile than Accenture plc. It trades about -0.2 of its total potential returns per unit of risk. Accenture plc is currently generating about 0.04 per unit of volatility. If you would invest 206,142 in Accenture plc on August 26, 2024 and sell it today you would earn a total of 2,178 from holding Accenture plc or generate 1.06% 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 vs. Accenture plc
Performance |
| Timeline |
| Braskem SA |
| Accenture plc |
Braskem SA and Accenture Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Braskem SA and Accenture Plc
The main advantage of trading using opposite Braskem SA and Accenture Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Braskem SA position performs unexpectedly, Accenture Plc 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 Accenture Plc will offset losses from the drop in Accenture Plc's long position.| Braskem SA vs. Braskem SA | Braskem SA vs. Braskem SA | Braskem SA vs. Unipar Carbocloro SA | Braskem SA vs. Unipar Carbocloro SA |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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