Correlation Between Quoin Pharmaceuticals and CytomX Therapeutics
Can any of the company-specific risk be diversified away by investing in both Quoin Pharmaceuticals and CytomX Therapeutics 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 CytomX Therapeutics 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 CytomX Therapeutics, you can compare the effects of market volatilities on Quoin Pharmaceuticals and CytomX Therapeutics 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 CytomX Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quoin Pharmaceuticals and CytomX Therapeutics.
Diversification Opportunities for Quoin Pharmaceuticals and CytomX Therapeutics
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Quoin and CytomX is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Quoin Pharmaceuticals Ltd and CytomX Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CytomX Therapeutics 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 CytomX Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CytomX Therapeutics has no effect on the direction of Quoin Pharmaceuticals i.e., Quoin Pharmaceuticals and CytomX Therapeutics go up and down completely randomly.
Pair Corralation between Quoin Pharmaceuticals and CytomX Therapeutics
Given the investment horizon of 90 days Quoin Pharmaceuticals Ltd is expected to under-perform the CytomX Therapeutics. In addition to that, Quoin Pharmaceuticals is 1.07 times more volatile than CytomX Therapeutics. It trades about -0.37 of its total potential returns per unit of risk. CytomX Therapeutics is currently generating about -0.21 per unit of volatility. If you would invest 108.00 in CytomX Therapeutics on August 25, 2024 and sell it today you would lose (19.00) from holding CytomX Therapeutics or give up 17.59% 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. CytomX Therapeutics
Performance |
| Timeline |
| Quoin Pharmaceuticals |
| CytomX Therapeutics |
Quoin Pharmaceuticals and CytomX Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quoin Pharmaceuticals and CytomX Therapeutics
The main advantage of trading using opposite Quoin Pharmaceuticals and CytomX Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quoin Pharmaceuticals position performs unexpectedly, CytomX Therapeutics 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 CytomX Therapeutics will offset losses from the drop in CytomX Therapeutics' long position.| Quoin Pharmaceuticals vs. Revelation Biosciences | Quoin Pharmaceuticals vs. Virax Biolabs Group | Quoin Pharmaceuticals vs. Neurobo Pharmaceuticals | Quoin Pharmaceuticals vs. Allarity Therapeutics |
| CytomX Therapeutics vs. Spero Therapeutics | CytomX Therapeutics vs. Instil Bio | CytomX Therapeutics vs. NextCure | CytomX Therapeutics vs. Assembly Biosciences |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| 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 Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |