Correlation Between Quoin Pharmaceuticals and Evaxion Biotech
Can any of the company-specific risk be diversified away by investing in both Quoin Pharmaceuticals and Evaxion Biotech 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 Evaxion Biotech 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 Evaxion Biotech AS, you can compare the effects of market volatilities on Quoin Pharmaceuticals and Evaxion Biotech 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 Evaxion Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quoin Pharmaceuticals and Evaxion Biotech.
Diversification Opportunities for Quoin Pharmaceuticals and Evaxion Biotech
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Quoin and Evaxion is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Quoin Pharmaceuticals Ltd and Evaxion Biotech AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evaxion Biotech AS 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 Evaxion Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evaxion Biotech AS has no effect on the direction of Quoin Pharmaceuticals i.e., Quoin Pharmaceuticals and Evaxion Biotech go up and down completely randomly.
Pair Corralation between Quoin Pharmaceuticals and Evaxion Biotech
Given the investment horizon of 90 days Quoin Pharmaceuticals Ltd is expected to under-perform the Evaxion Biotech. But the stock apears to be less risky and, when comparing its historical volatility, Quoin Pharmaceuticals Ltd is 1.2 times less risky than Evaxion Biotech. The stock trades about -0.06 of its potential returns per unit of risk. The Evaxion Biotech AS is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,630 in Evaxion Biotech AS on August 31, 2024 and sell it today you would lose (1,464) from holding Evaxion Biotech AS or give up 89.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Quoin Pharmaceuticals Ltd vs. Evaxion Biotech AS
Performance |
| Timeline |
| Quoin Pharmaceuticals |
| Evaxion Biotech AS |
Quoin Pharmaceuticals and Evaxion Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quoin Pharmaceuticals and Evaxion Biotech
The main advantage of trading using opposite Quoin Pharmaceuticals and Evaxion Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quoin Pharmaceuticals position performs unexpectedly, Evaxion Biotech 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 Evaxion Biotech will offset losses from the drop in Evaxion Biotech's long position.| Quoin Pharmaceuticals vs. Revelation Biosciences | Quoin Pharmaceuticals vs. Virax Biolabs Group | Quoin Pharmaceuticals vs. Neurobo Pharmaceuticals | Quoin Pharmaceuticals vs. Allarity Therapeutics |
| Evaxion Biotech vs. Reviva Pharmaceuticals Holdings | Evaxion Biotech vs. ZyVersa Therapeutics | Evaxion Biotech vs. Unicycive Therapeutics | Evaxion Biotech vs. Quoin Pharmaceuticals Ltd |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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