Correlation Between MeVis Medical and Quaker Chemical
Can any of the company-specific risk be diversified away by investing in both MeVis Medical 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 MeVis Medical and Quaker Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MeVis Medical Solutions and Quaker Chemical, you can compare the effects of market volatilities on MeVis Medical 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 MeVis Medical with a short position of Quaker Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of MeVis Medical and Quaker Chemical.
Diversification Opportunities for MeVis Medical and Quaker Chemical
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MeVis and Quaker is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding MeVis Medical Solutions and Quaker Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quaker Chemical and MeVis Medical 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 MeVis Medical Solutions 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 MeVis Medical i.e., MeVis Medical and Quaker Chemical go up and down completely randomly.
Pair Corralation between MeVis Medical and Quaker Chemical
Assuming the 90 days trading horizon MeVis Medical is expected to generate 24.93 times less return on investment than Quaker Chemical. But when comparing it to its historical volatility, MeVis Medical Solutions is 3.33 times less risky than Quaker Chemical. It trades about 0.0 of its potential returns per unit of risk. Quaker Chemical is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 13,250 in Quaker Chemical on October 29, 2024 and sell it today you would earn a total of 50.00 from holding Quaker Chemical or generate 0.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MeVis Medical Solutions vs. Quaker Chemical
Performance |
| Timeline |
| MeVis Medical Solutions |
| Quaker Chemical |
MeVis Medical and Quaker Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MeVis Medical and Quaker Chemical
The main advantage of trading using opposite MeVis Medical and Quaker Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MeVis Medical 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.| MeVis Medical vs. Corporate Office Properties | MeVis Medical vs. Coor Service Management | MeVis Medical vs. Jupiter Fund Management | MeVis Medical vs. LANDSEA GREEN MANAGEMENT |
| Quaker Chemical vs. Scandinavian Tobacco Group | Quaker Chemical vs. Align Technology | Quaker Chemical vs. Vishay Intertechnology | Quaker Chemical vs. SCOTT TECHNOLOGY |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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