Correlation Between 254709AQ1 and Braskem SA
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By analyzing existing cross correlation between DFS 6125 and Braskem SA Class, you can compare the effects of market volatilities on 254709AQ1 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 254709AQ1 with a short position of Braskem SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of 254709AQ1 and Braskem SA.
Diversification Opportunities for 254709AQ1 and Braskem SA
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 254709AQ1 and Braskem is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding DFS 6125 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 254709AQ1 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 DFS 6125 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 254709AQ1 i.e., 254709AQ1 and Braskem SA go up and down completely randomly.
Pair Corralation between 254709AQ1 and Braskem SA
Assuming the 90 days trading horizon DFS 6125 is expected to generate 0.2 times more return on investment than Braskem SA. However, DFS 6125 is 4.92 times less risky than Braskem SA. It trades about 0.0 of its potential returns per unit of risk. Braskem SA Class is currently generating about -0.09 per unit of risk. If you would invest 9,954 in DFS 6125 on August 28, 2024 and sell it today you would lose (6.00) from holding DFS 6125 or give up 0.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.31% |
| Values | Daily Returns |
DFS 6125 vs. Braskem SA Class
Performance |
| Timeline |
| 254709AQ1 |
| Braskem SA Class |
254709AQ1 and Braskem SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 254709AQ1 and Braskem SA
The main advantage of trading using opposite 254709AQ1 and Braskem SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 254709AQ1 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.| 254709AQ1 vs. Braskem SA Class | 254709AQ1 vs. Delek Logistics Partners | 254709AQ1 vs. Mativ Holdings | 254709AQ1 vs. Hudson Technologies |
| Braskem SA vs. Huntsman | Braskem SA vs. AdvanSix | Braskem SA vs. Celanese | Braskem SA vs. Green Plains Renewable |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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