Correlation Between Zurich Insurance and Quaker Chemical
Can any of the company-specific risk be diversified away by investing in both Zurich Insurance 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 Zurich Insurance and Quaker Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zurich Insurance Group and Quaker Chemical, you can compare the effects of market volatilities on Zurich Insurance 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 Zurich Insurance with a short position of Quaker Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zurich Insurance and Quaker Chemical.
Diversification Opportunities for Zurich Insurance and Quaker Chemical
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Zurich and Quaker is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Zurich Insurance Group and Quaker Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quaker Chemical and Zurich Insurance 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 Zurich Insurance Group 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 Zurich Insurance i.e., Zurich Insurance and Quaker Chemical go up and down completely randomly.
Pair Corralation between Zurich Insurance and Quaker Chemical
Assuming the 90 days trading horizon Zurich Insurance Group is expected to under-perform the Quaker Chemical. In addition to that, Zurich Insurance is 1.05 times more volatile than Quaker Chemical. It trades about -0.01 of its total potential returns per unit of risk. Quaker Chemical is currently generating about 0.0 per unit of volatility. If you would invest 13,350 in Quaker Chemical on October 28, 2024 and sell it today you would lose (50.00) from holding Quaker Chemical or give up 0.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zurich Insurance Group vs. Quaker Chemical
Performance |
| Timeline |
| Zurich Insurance |
| Quaker Chemical |
Zurich Insurance and Quaker Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zurich Insurance and Quaker Chemical
The main advantage of trading using opposite Zurich Insurance and Quaker Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zurich Insurance 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.| Zurich Insurance vs. MGIC INVESTMENT | Zurich Insurance vs. AGNC INVESTMENT | Zurich Insurance vs. AECOM TECHNOLOGY | Zurich Insurance vs. Chesapeake Utilities |
| Quaker Chemical vs. ANTA SPORTS PRODUCT | Quaker Chemical vs. MeVis Medical Solutions | Quaker Chemical vs. Genertec Universal Medical | Quaker Chemical vs. Air Transport Services |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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