Correlation Between Quaker Chemical and INTEGR SILICON

Can any of the company-specific risk be diversified away by investing in both Quaker Chemical and INTEGR SILICON 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 INTEGR SILICON into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Quaker Chemical and INTEGR SILICON SOL, you can compare the effects of market volatilities on Quaker Chemical and INTEGR SILICON 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 INTEGR SILICON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quaker Chemical and INTEGR SILICON.

Diversification Opportunities for Quaker Chemical and INTEGR SILICON

0.0

Correlation Coefficient

Quaker Chemical  INTEGR SILICON

Pay attention - limited upside

The 3 months correlation between Quaker and INTEGR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Quaker Chemical and INTEGR SILICON SOL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTEGR SILICON SOL 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 INTEGR SILICON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTEGR SILICON SOL has no effect on the direction of Quaker Chemical i.e., Quaker Chemical and INTEGR SILICON go up and down completely randomly.

Pair Corralation between Quaker Chemical and INTEGR SILICON

If you would invest (100.00) in INTEGR SILICON SOL on December 28, 2024 and sell it today you would earn a total of  100.00  from holding INTEGR SILICON SOL or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Quaker Chemical  vs.  INTEGR SILICON SOL

Quaker Chemical

Risk-Adjusted Performance

Very Weak

Over the last 90 days Quaker Chemical has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

INTEGR SILICON SOL

Risk-Adjusted Performance

Very Weak

Over the last 90 days INTEGR SILICON SOL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, INTEGR SILICON is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Quaker Chemical and INTEGR SILICON

The main advantage of trading using opposite Quaker Chemical and INTEGR SILICON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quaker Chemical position performs unexpectedly, INTEGR SILICON 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 INTEGR SILICON will offset losses from the drop in INTEGR SILICON's long position.

The idea behind Quaker Chemical and INTEGR SILICON SOL pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..