Correlation Between CHEMICAL INDUSTRIES and Quaker Chemical
Can any of the company-specific risk be diversified away by investing in both CHEMICAL INDUSTRIES and Quaker Chemical 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 CHEMICAL INDUSTRIES and Quaker Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHEMICAL INDUSTRIES and Quaker Chemical, you can compare the effects of market volatilities on CHEMICAL INDUSTRIES and Quaker Chemical 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 CHEMICAL INDUSTRIES with a short position of Quaker Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHEMICAL INDUSTRIES and Quaker Chemical.
Diversification Opportunities for CHEMICAL INDUSTRIES and Quaker Chemical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CHEMICAL and Quaker is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CHEMICAL INDUSTRIES and Quaker Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quaker Chemical and CHEMICAL INDUSTRIES 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 CHEMICAL INDUSTRIES are associated (or correlated) with Quaker Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quaker Chemical has no effect on the direction of CHEMICAL INDUSTRIES i.e., CHEMICAL INDUSTRIES and Quaker Chemical go up and down completely randomly.
Pair Corralation between CHEMICAL INDUSTRIES and Quaker Chemical
If you would invest 14,200 in Quaker Chemical on August 29, 2024 and sell it today you would earn a total of 1,500 from holding Quaker Chemical or generate 10.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CHEMICAL INDUSTRIES vs. Quaker Chemical
Performance |
| Timeline |
| CHEMICAL INDUSTRIES |
| Quaker Chemical |
CHEMICAL INDUSTRIES and Quaker Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHEMICAL INDUSTRIES and Quaker Chemical
The main advantage of trading using opposite CHEMICAL INDUSTRIES and Quaker Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHEMICAL INDUSTRIES position performs unexpectedly, Quaker Chemical 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 Quaker Chemical will offset losses from the drop in Quaker Chemical's long position.| CHEMICAL INDUSTRIES vs. Food Life Companies | CHEMICAL INDUSTRIES vs. TreeHouse Foods | CHEMICAL INDUSTRIES vs. Lifeway Foods | CHEMICAL INDUSTRIES vs. Dairy Farm International |
| Quaker Chemical vs. Linde plc | Quaker Chemical vs. Superior Plus Corp | Quaker Chemical vs. NMI Holdings | Quaker Chemical vs. SIVERS SEMICONDUCTORS AB |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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