Correlation Between ATRYS HEALTH and Quaker Chemical
Can any of the company-specific risk be diversified away by investing in both ATRYS HEALTH 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 ATRYS HEALTH and Quaker Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATRYS HEALTH SA and Quaker Chemical, you can compare the effects of market volatilities on ATRYS HEALTH 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 ATRYS HEALTH with a short position of Quaker Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRYS HEALTH and Quaker Chemical.
Diversification Opportunities for ATRYS HEALTH and Quaker Chemical
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ATRYS and Quaker is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding ATRYS HEALTH SA and Quaker Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quaker Chemical and ATRYS HEALTH 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 ATRYS HEALTH SA 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 ATRYS HEALTH i.e., ATRYS HEALTH and Quaker Chemical go up and down completely randomly.
Pair Corralation between ATRYS HEALTH and Quaker Chemical
Assuming the 90 days horizon ATRYS HEALTH SA is expected to under-perform the Quaker Chemical. In addition to that, ATRYS HEALTH is 1.13 times more volatile than Quaker Chemical. It trades about -0.05 of its total potential returns per unit of risk. Quaker Chemical is currently generating about 0.0 per unit of volatility. If you would invest 16,926 in Quaker Chemical on September 3, 2024 and sell it today you would lose (2,326) from holding Quaker Chemical or give up 13.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATRYS HEALTH SA vs. Quaker Chemical
Performance |
| Timeline |
| ATRYS HEALTH SA |
| Quaker Chemical |
ATRYS HEALTH and Quaker Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRYS HEALTH and Quaker Chemical
The main advantage of trading using opposite ATRYS HEALTH and Quaker Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRYS HEALTH 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.| ATRYS HEALTH vs. Harmony Gold Mining | ATRYS HEALTH vs. BRIT AMER TOBACCO | ATRYS HEALTH vs. Mobilezone Holding AG | ATRYS HEALTH vs. KENEDIX OFFICE INV |
| Quaker Chemical vs. COMMERCIAL VEHICLE | Quaker Chemical vs. MOLSON RS BEVERAGE | Quaker Chemical vs. SENECA FOODS A | Quaker Chemical vs. TYSON FOODS A |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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