Correlation Between Unipar Carbocloro and Braskem SA
Can any of the company-specific risk be diversified away by investing in both Unipar Carbocloro 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 Unipar Carbocloro and Braskem SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unipar Carbocloro SA and Braskem SA, you can compare the effects of market volatilities on Unipar Carbocloro 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 Unipar Carbocloro with a short position of Braskem SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unipar Carbocloro and Braskem SA.
Diversification Opportunities for Unipar Carbocloro and Braskem SA
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Unipar and Braskem is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Unipar Carbocloro SA and Braskem SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Braskem SA and Unipar Carbocloro 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 Unipar Carbocloro 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 Unipar Carbocloro i.e., Unipar Carbocloro and Braskem SA go up and down completely randomly.
Pair Corralation between Unipar Carbocloro and Braskem SA
Assuming the 90 days trading horizon Unipar Carbocloro SA is expected to under-perform the Braskem SA. But the preferred stock apears to be less risky and, when comparing its historical volatility, Unipar Carbocloro SA is 1.82 times less risky than Braskem SA. The preferred stock trades about -0.06 of its potential returns per unit of risk. The Braskem SA is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,222 in Braskem SA on November 5, 2024 and sell it today you would earn a total of 106.00 from holding Braskem SA or generate 8.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unipar Carbocloro SA vs. Braskem SA
Performance |
| Timeline |
| Unipar Carbocloro |
| Braskem SA |
Unipar Carbocloro and Braskem SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unipar Carbocloro and Braskem SA
The main advantage of trading using opposite Unipar Carbocloro and Braskem SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unipar Carbocloro 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.| Unipar Carbocloro vs. Unipar Carbocloro SA | Unipar Carbocloro vs. Unipar Carbocloro SA | Unipar Carbocloro vs. Braskem SA | Unipar Carbocloro vs. Klabin SA |
| Braskem SA vs. Patria Investments Limited | Braskem SA vs. Automatic Data Processing | Braskem SA vs. Charter Communications | Braskem SA vs. G2D Investments |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |