Correlation Between SIVERS SEMICONDUCTORS and Quaker Chemical
Can any of the company-specific risk be diversified away by investing in both SIVERS SEMICONDUCTORS and Quaker Chemical 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 SIVERS SEMICONDUCTORS and Quaker Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SIVERS SEMICONDUCTORS AB and Quaker Chemical, you can compare the effects of market volatilities on SIVERS SEMICONDUCTORS and Quaker Chemical 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 SIVERS SEMICONDUCTORS with a short position of Quaker Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIVERS SEMICONDUCTORS and Quaker Chemical.
Diversification Opportunities for SIVERS SEMICONDUCTORS and Quaker Chemical
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SIVERS and Quaker is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding SIVERS SEMICONDUCTORS AB and Quaker Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quaker Chemical and SIVERS SEMICONDUCTORS 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 SIVERS SEMICONDUCTORS AB are associated (or correlated) with Quaker Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quaker Chemical has no effect on the direction of SIVERS SEMICONDUCTORS i.e., SIVERS SEMICONDUCTORS and Quaker Chemical go up and down completely randomly.
Pair Corralation between SIVERS SEMICONDUCTORS and Quaker Chemical
Assuming the 90 days horizon SIVERS SEMICONDUCTORS AB is expected to generate 2.76 times more return on investment than Quaker Chemical. However, SIVERS SEMICONDUCTORS is 2.76 times more volatile than Quaker Chemical. It trades about 0.0 of its potential returns per unit of risk. Quaker Chemical is currently generating about -0.02 per unit of risk. If you would invest 70.00 in SIVERS SEMICONDUCTORS AB on November 27, 2024 and sell it today you would lose (40.00) from holding SIVERS SEMICONDUCTORS AB or give up 57.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SIVERS SEMICONDUCTORS AB vs. Quaker Chemical
Performance |
| Timeline |
| SIVERS SEMICONDUCTORS |
| Quaker Chemical |
SIVERS SEMICONDUCTORS and Quaker Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIVERS SEMICONDUCTORS and Quaker Chemical
The main advantage of trading using opposite SIVERS SEMICONDUCTORS and Quaker Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIVERS SEMICONDUCTORS position performs unexpectedly, Quaker Chemical 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 Quaker Chemical will offset losses from the drop in Quaker Chemical's long position.| SIVERS SEMICONDUCTORS vs. Cairo Communication SpA | SIVERS SEMICONDUCTORS vs. JSC Halyk bank | SIVERS SEMICONDUCTORS vs. Entravision Communications | SIVERS SEMICONDUCTORS vs. REVO INSURANCE SPA |
| Quaker Chemical vs. SmarTone Telecommunications Holdings | Quaker Chemical vs. Canadian Utilities Limited | Quaker Chemical vs. Iridium Communications | Quaker Chemical vs. Entravision Communications |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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