Correlation Between SCANDMEDICAL SOLDK and Quaker Chemical
Can any of the company-specific risk be diversified away by investing in both SCANDMEDICAL SOLDK 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 SCANDMEDICAL SOLDK and Quaker Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCANDMEDICAL SOLDK 040 and Quaker Chemical, you can compare the effects of market volatilities on SCANDMEDICAL SOLDK 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 SCANDMEDICAL SOLDK with a short position of Quaker Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCANDMEDICAL SOLDK and Quaker Chemical.
Diversification Opportunities for SCANDMEDICAL SOLDK and Quaker Chemical
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SCANDMEDICAL and Quaker is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding SCANDMEDICAL SOLDK 040 and Quaker Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quaker Chemical and SCANDMEDICAL SOLDK 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 SCANDMEDICAL SOLDK 040 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 SCANDMEDICAL SOLDK i.e., SCANDMEDICAL SOLDK and Quaker Chemical go up and down completely randomly.
Pair Corralation between SCANDMEDICAL SOLDK and Quaker Chemical
Assuming the 90 days horizon SCANDMEDICAL SOLDK 040 is expected to under-perform the Quaker Chemical. But the stock apears to be less risky and, when comparing its historical volatility, SCANDMEDICAL SOLDK 040 is 1.15 times less risky than Quaker Chemical. The stock trades about -0.11 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 13,350 in Quaker Chemical on November 1, 2024 and sell it today you would earn a total of 350.00 from holding Quaker Chemical or generate 2.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCANDMEDICAL SOLDK 040 vs. Quaker Chemical
Performance |
| Timeline |
| SCANDMEDICAL SOLDK 040 |
| Quaker Chemical |
SCANDMEDICAL SOLDK and Quaker Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCANDMEDICAL SOLDK and Quaker Chemical
The main advantage of trading using opposite SCANDMEDICAL SOLDK and Quaker Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCANDMEDICAL SOLDK 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.| SCANDMEDICAL SOLDK vs. Osisko Metals | SCANDMEDICAL SOLDK vs. Ribbon Communications | SCANDMEDICAL SOLDK vs. Cairo Communication SpA | SCANDMEDICAL SOLDK vs. Nippon Light Metal |
| Quaker Chemical vs. Medical Properties Trust | Quaker Chemical vs. Advanced Medical Solutions | Quaker Chemical vs. Telecom Argentina SA | Quaker Chemical vs. SCANDMEDICAL SOLDK 040 |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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