Correlation Between Bloomage Biotechnology and Quaker Chemical

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Can any of the company-specific risk be diversified away by investing in both Bloomage Biotechnology 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 Bloomage Biotechnology and Quaker Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bloomage Biotechnology Corp and Quaker Chemical, you can compare the effects of market volatilities on Bloomage Biotechnology 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 Bloomage Biotechnology with a short position of Quaker Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloomage Biotechnology and Quaker Chemical.

Diversification Opportunities for Bloomage Biotechnology and Quaker Chemical

0.01
  Correlation Coefficient

Significant diversification

The 3 months correlation between Bloomage and Quaker is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Bloomage Biotechnology Corp and Quaker Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quaker Chemical and Bloomage Biotechnology 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 Bloomage Biotechnology Corp 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 Bloomage Biotechnology i.e., Bloomage Biotechnology and Quaker Chemical go up and down completely randomly.

Pair Corralation between Bloomage Biotechnology and Quaker Chemical

Assuming the 90 days trading horizon Bloomage Biotechnology Corp is expected to under-perform the Quaker Chemical. But the stock apears to be less risky and, when comparing its historical volatility, Bloomage Biotechnology Corp is 1.81 times less risky than Quaker Chemical. The stock trades about -0.32 of its potential returns per unit of risk. The Quaker Chemical is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  13,950  in Quaker Chemical on September 13, 2025 and sell it today you would earn a total of  274.00  from holding Quaker Chemical or generate 1.96% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy92.06%
ValuesDaily Returns

Bloomage Biotechnology Corp  vs.  Quaker Chemical

 Performance 
       Timeline  
Bloomage Biotechnology 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Bloomage Biotechnology Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long term up-swing for the company investors.
Quaker Chemical 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Quaker Chemical are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Quaker Chemical is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Bloomage Biotechnology and Quaker Chemical Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Bloomage Biotechnology and Quaker Chemical

The main advantage of trading using opposite Bloomage Biotechnology and Quaker Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloomage Biotechnology 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.
The idea behind Bloomage Biotechnology Corp and Quaker Chemical 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

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