Correlation Between Quaker Chemical and VARIOUS EATERIES
Can any of the company-specific risk be diversified away by investing in both Quaker Chemical and VARIOUS EATERIES 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 VARIOUS EATERIES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quaker Chemical and VARIOUS EATERIES LS, you can compare the effects of market volatilities on Quaker Chemical and VARIOUS EATERIES 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 VARIOUS EATERIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quaker Chemical and VARIOUS EATERIES.
Diversification Opportunities for Quaker Chemical and VARIOUS EATERIES
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Quaker and VARIOUS is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Quaker Chemical and VARIOUS EATERIES LS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VARIOUS EATERIES 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 VARIOUS EATERIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VARIOUS EATERIES has no effect on the direction of Quaker Chemical i.e., Quaker Chemical and VARIOUS EATERIES go up and down completely randomly.
Pair Corralation between Quaker Chemical and VARIOUS EATERIES
Assuming the 90 days horizon Quaker Chemical is expected to under-perform the VARIOUS EATERIES. In addition to that, Quaker Chemical is 1.57 times more volatile than VARIOUS EATERIES LS. It trades about -0.27 of its total potential returns per unit of risk. VARIOUS EATERIES LS is currently generating about -0.21 per unit of volatility. If you would invest 21.00 in VARIOUS EATERIES LS on September 13, 2024 and sell it today you would lose (1.00) from holding VARIOUS EATERIES LS or give up 4.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quaker Chemical vs. VARIOUS EATERIES LS
Performance |
| Timeline |
| Quaker Chemical |
| VARIOUS EATERIES |
Quaker Chemical and VARIOUS EATERIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quaker Chemical and VARIOUS EATERIES
The main advantage of trading using opposite Quaker Chemical and VARIOUS EATERIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quaker Chemical position performs unexpectedly, VARIOUS EATERIES 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 VARIOUS EATERIES will offset losses from the drop in VARIOUS EATERIES's long position.| Quaker Chemical vs. ScanSource | Quaker Chemical vs. BlueScope Steel Limited | Quaker Chemical vs. KRAKATAU STEEL B | Quaker Chemical vs. Khiron Life Sciences |
| VARIOUS EATERIES vs. Starbucks | VARIOUS EATERIES vs. Superior Plus Corp | VARIOUS EATERIES vs. SIVERS SEMICONDUCTORS AB | VARIOUS EATERIES vs. NorAm Drilling AS |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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