Correlation Between Quaker Chemical and ISE Chemicals
Can any of the company-specific risk be diversified away by investing in both Quaker Chemical and ISE Chemicals 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 ISE Chemicals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quaker Chemical and ISE Chemicals, you can compare the effects of market volatilities on Quaker Chemical and ISE Chemicals 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 ISE Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quaker Chemical and ISE Chemicals.
Diversification Opportunities for Quaker Chemical and ISE Chemicals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Quaker and ISE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Quaker Chemical and ISE Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ISE Chemicals 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 ISE Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ISE Chemicals has no effect on the direction of Quaker Chemical i.e., Quaker Chemical and ISE Chemicals go up and down completely randomly.
Pair Corralation between Quaker Chemical and ISE Chemicals
If you would invest 14,062 in Quaker Chemical on August 31, 2025 and sell it today you would lose (197.00) from holding Quaker Chemical or give up 1.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 96.92% |
| Values | Daily Returns |
Quaker Chemical vs. ISE Chemicals
Performance |
| Timeline |
| Quaker Chemical |
| ISE Chemicals |
Quaker Chemical and ISE Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quaker Chemical and ISE Chemicals
The main advantage of trading using opposite Quaker Chemical and ISE Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quaker Chemical position performs unexpectedly, ISE Chemicals 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 ISE Chemicals will offset losses from the drop in ISE Chemicals' long position.| Quaker Chemical vs. Vishay Intertechnology | Quaker Chemical vs. Robix Environmental Technologies | Quaker Chemical vs. Sunny Optical Technology | Quaker Chemical vs. Tianjin Capital Environmental |
| ISE Chemicals vs. NVIDIA | ISE Chemicals vs. Apple Inc | ISE Chemicals vs. Alphabet Inc Class C | ISE Chemicals vs. Microsoft |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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