Correlation Between JSL SA and Braskem SA
Can any of the company-specific risk be diversified away by investing in both JSL SA 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 JSL SA and Braskem SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JSL SA and Braskem SA, you can compare the effects of market volatilities on JSL SA 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 JSL SA with a short position of Braskem SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSL SA and Braskem SA.
Diversification Opportunities for JSL SA and Braskem SA
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JSL and Braskem is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding JSL SA and Braskem SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Braskem SA and JSL 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 JSL SA 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 has no effect on the direction of JSL SA i.e., JSL SA and Braskem SA go up and down completely randomly.
Pair Corralation between JSL SA and Braskem SA
Assuming the 90 days trading horizon JSL SA is expected to generate 0.88 times more return on investment than Braskem SA. However, JSL SA is 1.13 times less risky than Braskem SA. It trades about -0.09 of its potential returns per unit of risk. Braskem SA is currently generating about -0.14 per unit of risk. If you would invest 780.00 in JSL SA on August 27, 2024 and sell it today you would lose (52.00) from holding JSL SA or give up 6.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JSL SA vs. Braskem SA
Performance |
| Timeline |
| JSL SA |
| Braskem SA |
JSL SA and Braskem SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSL SA and Braskem SA
The main advantage of trading using opposite JSL SA and Braskem SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSL SA 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.| JSL SA vs. METISA Metalrgica Timboense | JSL SA vs. Lupatech SA | JSL SA vs. Recrusul SA | JSL SA vs. Fras le SA |
| Braskem SA vs. Braskem SA | Braskem SA vs. Braskem SA | Braskem SA vs. Bradespar SA | Braskem SA vs. Unipar Carbocloro 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |