Correlation Between Quaker Chemical and ATRYS HEALTH
Can any of the company-specific risk be diversified away by investing in both Quaker Chemical and ATRYS HEALTH 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 ATRYS HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quaker Chemical and ATRYS HEALTH SA, you can compare the effects of market volatilities on Quaker Chemical and ATRYS HEALTH 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 ATRYS HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quaker Chemical and ATRYS HEALTH.
Diversification Opportunities for Quaker Chemical and ATRYS HEALTH
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Quaker and ATRYS is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Quaker Chemical and ATRYS HEALTH SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATRYS HEALTH SA 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 ATRYS HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATRYS HEALTH SA has no effect on the direction of Quaker Chemical i.e., Quaker Chemical and ATRYS HEALTH go up and down completely randomly.
Pair Corralation between Quaker Chemical and ATRYS HEALTH
Assuming the 90 days horizon Quaker Chemical is expected to generate 1.52 times more return on investment than ATRYS HEALTH. However, Quaker Chemical is 1.52 times more volatile than ATRYS HEALTH SA. It trades about -0.02 of its potential returns per unit of risk. ATRYS HEALTH SA is currently generating about -0.06 per unit of risk. If you would invest 14,900 in Quaker Chemical on September 4, 2024 and sell it today you would lose (300.00) from holding Quaker Chemical or give up 2.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quaker Chemical vs. ATRYS HEALTH SA
Performance |
| Timeline |
| Quaker Chemical |
| ATRYS HEALTH SA |
Quaker Chemical and ATRYS HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quaker Chemical and ATRYS HEALTH
The main advantage of trading using opposite Quaker Chemical and ATRYS HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quaker Chemical position performs unexpectedly, ATRYS HEALTH 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 ATRYS HEALTH will offset losses from the drop in ATRYS HEALTH's long position.| Quaker Chemical vs. The Sherwin Williams | Quaker Chemical vs. Dupont De Nemours | Quaker Chemical vs. Superior Plus Corp | Quaker Chemical vs. NMI Holdings |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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