Correlation Between Quaker Chemical and Hudson Technologies
Can any of the company-specific risk be diversified away by investing in both Quaker Chemical and Hudson Technologies 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 Hudson Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quaker Chemical and Hudson Technologies, you can compare the effects of market volatilities on Quaker Chemical and Hudson Technologies 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 Hudson Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quaker Chemical and Hudson Technologies.
Diversification Opportunities for Quaker Chemical and Hudson Technologies
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Quaker and Hudson is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Quaker Chemical and Hudson Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hudson Technologies 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 Hudson Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hudson Technologies has no effect on the direction of Quaker Chemical i.e., Quaker Chemical and Hudson Technologies go up and down completely randomly.
Pair Corralation between Quaker Chemical and Hudson Technologies
Considering the 90-day investment horizon Quaker Chemical is expected to generate 0.63 times more return on investment than Hudson Technologies. However, Quaker Chemical is 1.59 times less risky than Hudson Technologies. It trades about 0.09 of its potential returns per unit of risk. Hudson Technologies is currently generating about -0.21 per unit of risk. If you would invest 15,739 in Quaker Chemical on August 23, 2024 and sell it today you would earn a total of 906.00 from holding Quaker Chemical or generate 5.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quaker Chemical vs. Hudson Technologies
Performance |
| Timeline |
| Quaker Chemical |
| Hudson Technologies |
Quaker Chemical and Hudson Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quaker Chemical and Hudson Technologies
The main advantage of trading using opposite Quaker Chemical and Hudson Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quaker Chemical position performs unexpectedly, Hudson Technologies 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 Hudson Technologies will offset losses from the drop in Hudson Technologies' long position.| Quaker Chemical vs. Minerals Technologies | Quaker Chemical vs. Innospec | Quaker Chemical vs. H B Fuller | Quaker Chemical vs. Cabot |
| Hudson Technologies vs. Sensient Technologies | Hudson Technologies vs. Innospec | Hudson Technologies vs. H B Fuller | Hudson Technologies vs. Quaker Chemical |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |