Correlation Between Quaker Chemical and AXMIN
Can any of the company-specific risk be diversified away by investing in both Quaker Chemical and AXMIN 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 AXMIN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quaker Chemical and AXMIN Inc, you can compare the effects of market volatilities on Quaker Chemical and AXMIN 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 AXMIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quaker Chemical and AXMIN.
Diversification Opportunities for Quaker Chemical and AXMIN
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Quaker and AXMIN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Quaker Chemical and AXMIN Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXMIN Inc 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 AXMIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXMIN Inc has no effect on the direction of Quaker Chemical i.e., Quaker Chemical and AXMIN go up and down completely randomly.
Pair Corralation between Quaker Chemical and AXMIN
Assuming the 90 days horizon Quaker Chemical is expected to generate 0.32 times more return on investment than AXMIN. However, Quaker Chemical is 3.13 times less risky than AXMIN. It trades about 0.01 of its potential returns per unit of risk. AXMIN Inc is currently generating about -0.01 per unit of risk. If you would invest 14,884 in Quaker Chemical on September 12, 2024 and sell it today you would lose (84.00) from holding Quaker Chemical or give up 0.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quaker Chemical vs. AXMIN Inc
Performance |
| Timeline |
| Quaker Chemical |
| AXMIN Inc |
Quaker Chemical and AXMIN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quaker Chemical and AXMIN
The main advantage of trading using opposite Quaker Chemical and AXMIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quaker Chemical position performs unexpectedly, AXMIN 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 AXMIN will offset losses from the drop in AXMIN's long position.| Quaker Chemical vs. Albemarle | Quaker Chemical vs. Superior Plus Corp | Quaker Chemical vs. SIVERS SEMICONDUCTORS AB | Quaker Chemical vs. Norsk Hydro ASA |
| AXMIN vs. KINGBOARD CHEMICAL | AXMIN vs. Magic Software Enterprises | AXMIN vs. Siamgas And Petrochemicals | AXMIN 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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