Correlation Between Quoin Pharmaceuticals and AC Immune
Can any of the company-specific risk be diversified away by investing in both Quoin Pharmaceuticals and AC Immune 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 Quoin Pharmaceuticals and AC Immune into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quoin Pharmaceuticals Ltd and AC Immune, you can compare the effects of market volatilities on Quoin Pharmaceuticals and AC Immune 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 Quoin Pharmaceuticals with a short position of AC Immune. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quoin Pharmaceuticals and AC Immune.
Diversification Opportunities for Quoin Pharmaceuticals and AC Immune
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Quoin and ACIU is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Quoin Pharmaceuticals Ltd and AC Immune in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AC Immune and Quoin Pharmaceuticals 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 Quoin Pharmaceuticals Ltd are associated (or correlated) with AC Immune. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AC Immune has no effect on the direction of Quoin Pharmaceuticals i.e., Quoin Pharmaceuticals and AC Immune go up and down completely randomly.
Pair Corralation between Quoin Pharmaceuticals and AC Immune
Given the investment horizon of 90 days Quoin Pharmaceuticals Ltd is expected to under-perform the AC Immune. In addition to that, Quoin Pharmaceuticals is 1.49 times more volatile than AC Immune. It trades about -0.07 of its total potential returns per unit of risk. AC Immune is currently generating about 0.03 per unit of volatility. If you would invest 318.00 in AC Immune on August 29, 2024 and sell it today you would earn a total of 22.00 from holding AC Immune or generate 6.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.52% |
| Values | Daily Returns |
Quoin Pharmaceuticals Ltd vs. AC Immune
Performance |
| Timeline |
| Quoin Pharmaceuticals |
| AC Immune |
Quoin Pharmaceuticals and AC Immune Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quoin Pharmaceuticals and AC Immune
The main advantage of trading using opposite Quoin Pharmaceuticals and AC Immune positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quoin Pharmaceuticals position performs unexpectedly, AC Immune 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 AC Immune will offset losses from the drop in AC Immune's long position.| Quoin Pharmaceuticals vs. Revelation Biosciences | Quoin Pharmaceuticals vs. Virax Biolabs Group | Quoin Pharmaceuticals vs. Neurobo Pharmaceuticals | Quoin Pharmaceuticals vs. Allarity Therapeutics |
| AC Immune vs. Pmv Pharmaceuticals | AC Immune vs. Eliem Therapeutics | AC Immune vs. MediciNova | AC Immune vs. Pharvaris BV |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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