Correlation Between Catalyst Biosciences and Quoin Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Catalyst Biosciences and Quoin Pharmaceuticals 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 Catalyst Biosciences and Quoin Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalyst Biosciences and Quoin Pharmaceuticals Ltd, you can compare the effects of market volatilities on Catalyst Biosciences and Quoin Pharmaceuticals 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 Catalyst Biosciences with a short position of Quoin Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Biosciences and Quoin Pharmaceuticals.
Diversification Opportunities for Catalyst Biosciences and Quoin Pharmaceuticals
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Catalyst and Quoin is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Biosciences and Quoin Pharmaceuticals Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quoin Pharmaceuticals and Catalyst Biosciences 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 Catalyst Biosciences are associated (or correlated) with Quoin Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quoin Pharmaceuticals has no effect on the direction of Catalyst Biosciences i.e., Catalyst Biosciences and Quoin Pharmaceuticals go up and down completely randomly.
Pair Corralation between Catalyst Biosciences and Quoin Pharmaceuticals
Given the investment horizon of 90 days Catalyst Biosciences is expected to generate 0.84 times more return on investment than Quoin Pharmaceuticals. However, Catalyst Biosciences is 1.19 times less risky than Quoin Pharmaceuticals. It trades about 0.07 of its potential returns per unit of risk. Quoin Pharmaceuticals Ltd is currently generating about -0.06 per unit of risk. If you would invest 30.00 in Catalyst Biosciences on September 4, 2024 and sell it today you would earn a total of 11.00 from holding Catalyst Biosciences or generate 36.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 30.71% |
| Values | Daily Returns |
Catalyst Biosciences vs. Quoin Pharmaceuticals Ltd
Performance |
| Timeline |
| Catalyst Biosciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Quoin Pharmaceuticals |
Catalyst Biosciences and Quoin Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Biosciences and Quoin Pharmaceuticals
The main advantage of trading using opposite Catalyst Biosciences and Quoin Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Biosciences position performs unexpectedly, Quoin Pharmaceuticals 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 Quoin Pharmaceuticals will offset losses from the drop in Quoin Pharmaceuticals' long position.| Catalyst Biosciences vs. Akari Therapeutics PLC | Catalyst Biosciences vs. Benitec Biopharma Ltd | Catalyst Biosciences vs. Pulmatrix |
| Quoin Pharmaceuticals vs. Candel Therapeutics | Quoin Pharmaceuticals vs. Cingulate Warrants | Quoin Pharmaceuticals vs. Unicycive Therapeutics | Quoin Pharmaceuticals vs. Cardio Diagnostics Holdings |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |