Correlation Between Coupang LLC and Braskem SA
Can any of the company-specific risk be diversified away by investing in both Coupang LLC and Braskem SA 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 Coupang LLC and Braskem SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coupang LLC and Braskem SA Class, you can compare the effects of market volatilities on Coupang LLC and Braskem SA 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 Coupang LLC with a short position of Braskem SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coupang LLC and Braskem SA.
Diversification Opportunities for Coupang LLC and Braskem SA
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Coupang and Braskem is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Coupang LLC and Braskem SA Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Braskem SA Class and Coupang LLC 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 Coupang LLC are associated (or correlated) with Braskem SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Braskem SA Class has no effect on the direction of Coupang LLC i.e., Coupang LLC and Braskem SA go up and down completely randomly.
Pair Corralation between Coupang LLC and Braskem SA
Given the investment horizon of 90 days Coupang LLC is expected to generate 1.35 times more return on investment than Braskem SA. However, Coupang LLC is 1.35 times more volatile than Braskem SA Class. It trades about 0.01 of its potential returns per unit of risk. Braskem SA Class is currently generating about -0.29 per unit of risk. If you would invest 2,540 in Coupang LLC on September 2, 2024 and sell it today you would lose (4.00) from holding Coupang LLC or give up 0.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coupang LLC vs. Braskem SA Class
Performance |
| Timeline |
| Coupang LLC |
| Braskem SA Class |
Coupang LLC and Braskem SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coupang LLC and Braskem SA
The main advantage of trading using opposite Coupang LLC and Braskem SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coupang LLC position performs unexpectedly, Braskem SA 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 Braskem SA will offset losses from the drop in Braskem SA's long position.| Coupang LLC vs. PDD Holdings | Coupang LLC vs. JD Inc Adr | Coupang LLC vs. Alibaba Group Holding | Coupang LLC vs. Sea |
| Braskem SA vs. Valhi Inc | Braskem SA vs. Huntsman | Braskem SA vs. Lsb Industries | Braskem SA vs. Westlake Chemical Partners |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |