Correlation Between TSOGO SUN and Quaker Chemical
Can any of the company-specific risk be diversified away by investing in both TSOGO SUN 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 TSOGO SUN and Quaker Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TSOGO SUN GAMING and Quaker Chemical, you can compare the effects of market volatilities on TSOGO SUN 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 TSOGO SUN with a short position of Quaker Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of TSOGO SUN and Quaker Chemical.
Diversification Opportunities for TSOGO SUN and Quaker Chemical
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between TSOGO and Quaker is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding TSOGO SUN GAMING and Quaker Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quaker Chemical and TSOGO SUN 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 TSOGO SUN GAMING 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 TSOGO SUN i.e., TSOGO SUN and Quaker Chemical go up and down completely randomly.
Pair Corralation between TSOGO SUN and Quaker Chemical
Assuming the 90 days horizon TSOGO SUN GAMING is expected to under-perform the Quaker Chemical. But the stock apears to be less risky and, when comparing its historical volatility, TSOGO SUN GAMING is 3.52 times less risky than Quaker Chemical. The stock trades about -0.37 of its potential returns per unit of risk. The Quaker Chemical is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 14,000 in Quaker Chemical on September 1, 2024 and sell it today you would earn a total of 600.00 from holding Quaker Chemical or generate 4.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TSOGO SUN GAMING vs. Quaker Chemical
Performance |
| Timeline |
| TSOGO SUN GAMING |
| Quaker Chemical |
TSOGO SUN and Quaker Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TSOGO SUN and Quaker Chemical
The main advantage of trading using opposite TSOGO SUN and Quaker Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TSOGO SUN 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.| TSOGO SUN vs. Superior Plus Corp | TSOGO SUN vs. NMI Holdings | TSOGO SUN vs. Origin Agritech | TSOGO SUN vs. SIVERS SEMICONDUCTORS AB |
| Quaker Chemical vs. Transport International Holdings | Quaker Chemical vs. TSOGO SUN GAMING | Quaker Chemical vs. Air Transport Services | Quaker Chemical vs. EVS Broadcast Equipment |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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