Correlation Between Accretion Acquisition and Braskem SA
Can any of the company-specific risk be diversified away by investing in both Accretion Acquisition 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 Accretion Acquisition and Braskem SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accretion Acquisition Corp and Braskem SA Class, you can compare the effects of market volatilities on Accretion Acquisition 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 Accretion Acquisition with a short position of Braskem SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accretion Acquisition and Braskem SA.
Diversification Opportunities for Accretion Acquisition and Braskem SA
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Accretion and Braskem is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Accretion Acquisition Corp 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 Accretion Acquisition 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 Accretion Acquisition Corp 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 Accretion Acquisition i.e., Accretion Acquisition and Braskem SA go up and down completely randomly.
Pair Corralation between Accretion Acquisition and Braskem SA
If you would invest 1,055 in Accretion Acquisition Corp on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Accretion Acquisition Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Accretion Acquisition Corp vs. Braskem SA Class
Performance |
| Timeline |
| Accretion Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Braskem SA Class |
Accretion Acquisition and Braskem SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accretion Acquisition and Braskem SA
The main advantage of trading using opposite Accretion Acquisition and Braskem SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accretion Acquisition 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.| Accretion Acquisition vs. Alaska Air Group | Accretion Acquisition vs. Pentair PLC | Accretion Acquisition vs. Jacobs Solutions | Accretion Acquisition vs. Westinghouse Air Brake |
| 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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