Correlation Between Duckhorn Portfolio and Braskem SA

Can any of the company-specific risk be diversified away by investing in both Duckhorn Portfolio 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 Duckhorn Portfolio and Braskem SA into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Duckhorn Portfolio and Braskem SA, you can compare the effects of market volatilities on Duckhorn Portfolio 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 Duckhorn Portfolio with a short position of Braskem SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duckhorn Portfolio and Braskem SA.

Diversification Opportunities for Duckhorn Portfolio and Braskem SA

0.0

Correlation Coefficient

Duckhorn Portfolio  Braskem SA

Pay attention - limited upside

The 3 months correlation between Duckhorn and Braskem is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Duckhorn Portfolio and Braskem SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Braskem SA and Duckhorn Portfolio 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 Duckhorn Portfolio 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 Duckhorn Portfolio i.e., Duckhorn Portfolio and Braskem SA go up and down completely randomly.

Pair Corralation between Duckhorn Portfolio and Braskem SA

If you would invest (100.00) in Braskem SA on January 30, 2024 and sell it today you would earn a total of  100.00  from holding Braskem SA or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Duckhorn Portfolio  vs.  Braskem SA

Duckhorn Portfolio

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Duckhorn Portfolio has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Duckhorn Portfolio is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Braskem SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Braskem SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong primary indicators, Braskem SA is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Duckhorn Portfolio and Braskem SA

The main advantage of trading using opposite Duckhorn Portfolio and Braskem SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duckhorn Portfolio 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.

The idea behind Duckhorn Portfolio and Braskem SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.