Correlation Between Quaker Chemical and PEH WERTPAPIER
Can any of the company-specific risk be diversified away by investing in both Quaker Chemical and PEH WERTPAPIER 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 PEH WERTPAPIER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quaker Chemical and PEH WERTPAPIER, you can compare the effects of market volatilities on Quaker Chemical and PEH WERTPAPIER 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 PEH WERTPAPIER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quaker Chemical and PEH WERTPAPIER.
Diversification Opportunities for Quaker Chemical and PEH WERTPAPIER
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Quaker and PEH is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Quaker Chemical and PEH WERTPAPIER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PEH WERTPAPIER 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 PEH WERTPAPIER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PEH WERTPAPIER has no effect on the direction of Quaker Chemical i.e., Quaker Chemical and PEH WERTPAPIER go up and down completely randomly.
Pair Corralation between Quaker Chemical and PEH WERTPAPIER
Assuming the 90 days horizon Quaker Chemical is expected to under-perform the PEH WERTPAPIER. But the stock apears to be less risky and, when comparing its historical volatility, Quaker Chemical is 1.12 times less risky than PEH WERTPAPIER. The stock trades about -0.31 of its potential returns per unit of risk. The PEH WERTPAPIER is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 2,220 in PEH WERTPAPIER on September 15, 2024 and sell it today you would earn a total of 120.00 from holding PEH WERTPAPIER or generate 5.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Quaker Chemical vs. PEH WERTPAPIER
Performance |
| Timeline |
| Quaker Chemical |
| PEH WERTPAPIER |
Quaker Chemical and PEH WERTPAPIER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quaker Chemical and PEH WERTPAPIER
The main advantage of trading using opposite Quaker Chemical and PEH WERTPAPIER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quaker Chemical position performs unexpectedly, PEH WERTPAPIER 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 PEH WERTPAPIER will offset losses from the drop in PEH WERTPAPIER's long position.| Quaker Chemical vs. AAC TECHNOLOGHLDGADR | Quaker Chemical vs. HOCHSCHILD MINING | Quaker Chemical vs. OURGAME INTHOLDL 00005 | Quaker Chemical vs. Boyd Gaming |
| PEH WERTPAPIER vs. Siamgas And Petrochemicals | PEH WERTPAPIER vs. Consolidated Communications Holdings | PEH WERTPAPIER vs. X FAB Silicon Foundries | PEH WERTPAPIER 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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