Correlation Between Quoin Pharmaceuticals and Akanda Corp
Can any of the company-specific risk be diversified away by investing in both Quoin Pharmaceuticals and Akanda Corp 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 Akanda Corp 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 Akanda Corp, you can compare the effects of market volatilities on Quoin Pharmaceuticals and Akanda Corp 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 Akanda Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quoin Pharmaceuticals and Akanda Corp.
Diversification Opportunities for Quoin Pharmaceuticals and Akanda Corp
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Quoin and Akanda is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Quoin Pharmaceuticals Ltd and Akanda Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akanda Corp 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 Akanda Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akanda Corp has no effect on the direction of Quoin Pharmaceuticals i.e., Quoin Pharmaceuticals and Akanda Corp go up and down completely randomly.
Pair Corralation between Quoin Pharmaceuticals and Akanda Corp
Given the investment horizon of 90 days Quoin Pharmaceuticals Ltd is expected to generate 0.76 times more return on investment than Akanda Corp. However, Quoin Pharmaceuticals Ltd is 1.31 times less risky than Akanda Corp. It trades about -0.06 of its potential returns per unit of risk. Akanda Corp is currently generating about -0.09 per unit of risk. If you would invest 275.00 in Quoin Pharmaceuticals Ltd on August 27, 2024 and sell it today you would lose (216.00) from holding Quoin Pharmaceuticals Ltd or give up 78.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quoin Pharmaceuticals Ltd vs. Akanda Corp
Performance |
| Timeline |
| Quoin Pharmaceuticals |
| Akanda Corp |
Quoin Pharmaceuticals and Akanda Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quoin Pharmaceuticals and Akanda Corp
The main advantage of trading using opposite Quoin Pharmaceuticals and Akanda Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quoin Pharmaceuticals position performs unexpectedly, Akanda Corp 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 Akanda Corp will offset losses from the drop in Akanda Corp's long position.| Quoin Pharmaceuticals vs. Revelation Biosciences | Quoin Pharmaceuticals vs. Virax Biolabs Group | Quoin Pharmaceuticals vs. Neurobo Pharmaceuticals | Quoin Pharmaceuticals vs. Allarity Therapeutics |
| Akanda Corp vs. GelStat Corp | Akanda Corp vs. Shuttle Pharmaceuticals | Akanda Corp vs. Decibel Cannabis | Akanda Corp vs. C21 Investments |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |