Correlation Between Braskem SA and Airbnb
Can any of the company-specific risk be diversified away by investing in both Braskem SA and Airbnb 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 Airbnb into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Braskem SA and Airbnb Inc, you can compare the effects of market volatilities on Braskem SA and Airbnb 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 Airbnb. Check out your portfolio center. Please also check ongoing floating volatility patterns of Braskem SA and Airbnb.
Diversification Opportunities for Braskem SA and Airbnb
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Braskem and Airbnb is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Braskem SA and Airbnb Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airbnb 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 are associated (or correlated) with Airbnb. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airbnb Inc has no effect on the direction of Braskem SA i.e., Braskem SA and Airbnb go up and down completely randomly.
Pair Corralation between Braskem SA and Airbnb
Assuming the 90 days trading horizon Braskem SA is expected to under-perform the Airbnb. But the preferred stock apears to be less risky and, when comparing its historical volatility, Braskem SA is 1.44 times less risky than Airbnb. The preferred stock trades about -0.33 of its potential returns per unit of risk. The Airbnb Inc is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,928 in Airbnb Inc on November 28, 2024 and sell it today you would earn a total of 137.00 from holding Airbnb Inc or generate 3.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Braskem SA vs. Airbnb Inc
Performance |
| Timeline |
| Braskem SA |
| Airbnb Inc |
Braskem SA and Airbnb Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Braskem SA and Airbnb
The main advantage of trading using opposite Braskem SA and Airbnb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Braskem SA position performs unexpectedly, Airbnb 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 Airbnb will offset losses from the drop in Airbnb's long position.| Braskem SA vs. Companhia Siderrgica Nacional | Braskem SA vs. Usinas Siderrgicas de | Braskem SA vs. Gerdau SA | Braskem SA vs. Companhia Energtica de |
| Airbnb vs. Marfrig Global Foods | Airbnb vs. Host Hotels Resorts, | Airbnb vs. Monster Beverage | Airbnb vs. Costco Wholesale |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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