Correlation Between Quoin Pharmaceuticals and Affimed NV
Can any of the company-specific risk be diversified away by investing in both Quoin Pharmaceuticals and Affimed NV 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 Affimed NV 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 Affimed NV, you can compare the effects of market volatilities on Quoin Pharmaceuticals and Affimed NV 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 Affimed NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quoin Pharmaceuticals and Affimed NV.
Diversification Opportunities for Quoin Pharmaceuticals and Affimed NV
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Quoin and Affimed is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Quoin Pharmaceuticals Ltd and Affimed NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Affimed NV 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 Affimed NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Affimed NV has no effect on the direction of Quoin Pharmaceuticals i.e., Quoin Pharmaceuticals and Affimed NV go up and down completely randomly.
Pair Corralation between Quoin Pharmaceuticals and Affimed NV
Given the investment horizon of 90 days Quoin Pharmaceuticals Ltd is expected to under-perform the Affimed NV. In addition to that, Quoin Pharmaceuticals is 1.09 times more volatile than Affimed NV. It trades about -0.08 of its total potential returns per unit of risk. Affimed NV is currently generating about 0.01 per unit of volatility. If you would invest 400.00 in Affimed NV on September 2, 2024 and sell it today you would lose (116.00) from holding Affimed NV or give up 29.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quoin Pharmaceuticals Ltd vs. Affimed NV
Performance |
| Timeline |
| Quoin Pharmaceuticals |
| Affimed NV |
Quoin Pharmaceuticals and Affimed NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quoin Pharmaceuticals and Affimed NV
The main advantage of trading using opposite Quoin Pharmaceuticals and Affimed NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quoin Pharmaceuticals position performs unexpectedly, Affimed NV 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 Affimed NV will offset losses from the drop in Affimed NV's long position.| Quoin Pharmaceuticals vs. Revelation Biosciences | Quoin Pharmaceuticals vs. Virax Biolabs Group | Quoin Pharmaceuticals vs. Neurobo Pharmaceuticals | Quoin Pharmaceuticals vs. Allarity Therapeutics |
| Affimed NV vs. Pieris Pharmaceuticals | Affimed NV vs. ADC Therapeutics SA | Affimed NV vs. Agenus Inc | Affimed NV vs. X4 Pharmaceuticals |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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