Correlation Between Quaker Chemical and Chase
Can any of the company-specific risk be diversified away by investing in both Quaker Chemical and Chase 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 Quaker Chemical and Chase into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quaker Chemical and Chase, you can compare the effects of market volatilities on Quaker Chemical and Chase 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 Quaker Chemical with a short position of Chase. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quaker Chemical and Chase.
Diversification Opportunities for Quaker Chemical and Chase
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Quaker and Chase is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Quaker Chemical and Chase in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chase and Quaker Chemical 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 Quaker Chemical are associated (or correlated) with Chase. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chase has no effect on the direction of Quaker Chemical i.e., Quaker Chemical and Chase go up and down completely randomly.
Pair Corralation between Quaker Chemical and Chase
If you would invest 15,450 in Quaker Chemical on August 29, 2024 and sell it today you would earn a total of 330.00 from holding Quaker Chemical or generate 2.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Quaker Chemical vs. Chase
Performance |
| Timeline |
| Quaker Chemical |
| Chase |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Quaker Chemical and Chase Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quaker Chemical and Chase
The main advantage of trading using opposite Quaker Chemical and Chase positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quaker Chemical position performs unexpectedly, Chase 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 Chase will offset losses from the drop in Chase's long position.| Quaker Chemical vs. Minerals Technologies | Quaker Chemical vs. Innospec | Quaker Chemical vs. H B Fuller | Quaker Chemical vs. Cabot |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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