Correlation Between Braskem SA and Unipar Carbocloro
Can any of the company-specific risk be diversified away by investing in both Braskem SA and Unipar Carbocloro 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 Unipar Carbocloro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Braskem SA and Unipar Carbocloro SA, you can compare the effects of market volatilities on Braskem SA and Unipar Carbocloro 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 Unipar Carbocloro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Braskem SA and Unipar Carbocloro.
Diversification Opportunities for Braskem SA and Unipar Carbocloro
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Braskem and Unipar is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Braskem SA and Unipar Carbocloro SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unipar Carbocloro 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 Unipar Carbocloro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unipar Carbocloro has no effect on the direction of Braskem SA i.e., Braskem SA and Unipar Carbocloro go up and down completely randomly.
Pair Corralation between Braskem SA and Unipar Carbocloro
Assuming the 90 days trading horizon Braskem SA is expected to under-perform the Unipar Carbocloro. But the preferred stock apears to be less risky and, when comparing its historical volatility, Braskem SA is 2.19 times less risky than Unipar Carbocloro. The preferred stock trades about -0.38 of its potential returns per unit of risk. The Unipar Carbocloro SA is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 4,798 in Unipar Carbocloro SA on August 30, 2024 and sell it today you would earn a total of 502.00 from holding Unipar Carbocloro SA or generate 10.46% 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. Unipar Carbocloro SA
Performance |
| Timeline |
| Braskem SA |
| Unipar Carbocloro |
Braskem SA and Unipar Carbocloro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Braskem SA and Unipar Carbocloro
The main advantage of trading using opposite Braskem SA and Unipar Carbocloro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Braskem SA position performs unexpectedly, Unipar Carbocloro 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 Unipar Carbocloro will offset losses from the drop in Unipar Carbocloro's long position.| Braskem SA vs. Usinas Siderrgicas de | Braskem SA vs. Companhia Siderrgica Nacional | Braskem SA vs. Banco Bradesco SA | Braskem SA vs. Vale SA |
| Unipar Carbocloro vs. Unipar Carbocloro SA | Unipar Carbocloro vs. Unipar Carbocloro SA | Unipar Carbocloro vs. Braskem SA | Unipar Carbocloro vs. Klabin SA |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |