Correlation Between Quaker Chemical and WillScot Mobile
Can any of the company-specific risk be diversified away by investing in both Quaker Chemical and WillScot Mobile 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 WillScot Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quaker Chemical and WillScot Mobile Mini, you can compare the effects of market volatilities on Quaker Chemical and WillScot Mobile 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 WillScot Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quaker Chemical and WillScot Mobile.
Diversification Opportunities for Quaker Chemical and WillScot Mobile
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Quaker and WillScot is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Quaker Chemical and WillScot Mobile Mini in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WillScot Mobile Mini 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 WillScot Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WillScot Mobile Mini has no effect on the direction of Quaker Chemical i.e., Quaker Chemical and WillScot Mobile go up and down completely randomly.
Pair Corralation between Quaker Chemical and WillScot Mobile
Assuming the 90 days horizon Quaker Chemical is expected to under-perform the WillScot Mobile. But the stock apears to be less risky and, when comparing its historical volatility, Quaker Chemical is 1.84 times less risky than WillScot Mobile. The stock trades about -0.62 of its potential returns per unit of risk. The WillScot Mobile Mini is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 3,380 in WillScot Mobile Mini on October 14, 2024 and sell it today you would lose (120.00) from holding WillScot Mobile Mini or give up 3.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quaker Chemical vs. WillScot Mobile Mini
Performance |
| Timeline |
| Quaker Chemical |
| WillScot Mobile Mini |
Quaker Chemical and WillScot Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quaker Chemical and WillScot Mobile
The main advantage of trading using opposite Quaker Chemical and WillScot Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quaker Chemical position performs unexpectedly, WillScot Mobile 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 WillScot Mobile will offset losses from the drop in WillScot Mobile's long position.| Quaker Chemical vs. PLANT VEDA FOODS | Quaker Chemical vs. COFCO Joycome Foods | Quaker Chemical vs. Dave Busters Entertainment | Quaker Chemical vs. ANTA SPORTS PRODUCT |
| WillScot Mobile vs. TRAVEL LEISURE DL 01 | WillScot Mobile vs. CLEAN ENERGY FUELS | WillScot Mobile vs. Carnegie Clean Energy | WillScot Mobile vs. ADRIATIC METALS LS 013355 |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |