Correlation Between Quaker Chemical and Hellenic Telecommunicatio

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

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

Diversification Opportunities for Quaker Chemical and Hellenic Telecommunicatio

-0.05

Correlation Coefficient

Quaker Chemical  Hellenic Telecommunicatio

Good diversification

The 3 months correlation between Quaker and Hellenic is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Quaker Chemical and Hellenic Telecommunications Or in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hellenic Telecommunicatio 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 Hellenic Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hellenic Telecommunicatio has no effect on the direction of Quaker Chemical i.e., Quaker Chemical and Hellenic Telecommunicatio go up and down completely randomly.

Pair Corralation between Quaker Chemical and Hellenic Telecommunicatio

Assuming the 90 days horizon Quaker Chemical is expected to generate 2.58 times more return on investment than Hellenic Telecommunicatio. However, Quaker Chemical is 2.58 times more volatile than Hellenic Telecommunications Organization. It trades about 0.06 of its potential returns per unit of risk. Hellenic Telecommunications Organization is currently generating about 0.01 per unit of risk. If you would invest  9,262  in Quaker Chemical on April 25, 2025 and sell it today you would earn a total of  738.00  from holding Quaker Chemical or generate 7.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Quaker Chemical  vs.  Hellenic Telecommunications Or

Quaker Chemical

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Quaker Chemical are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Quaker Chemical may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Hellenic Telecommunicatio

Risk-Adjusted Performance

Insignificant

Over the last 90 days Hellenic Telecommunications Organization has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Hellenic Telecommunicatio is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Quaker Chemical and Hellenic Telecommunicatio

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

The idea behind Quaker Chemical and Hellenic Telecommunications Organization 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.