Correlation Between Quoin Pharmaceuticals and Longeveron LLC
Can any of the company-specific risk be diversified away by investing in both Quoin Pharmaceuticals and Longeveron LLC 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 Longeveron LLC 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 Longeveron LLC, you can compare the effects of market volatilities on Quoin Pharmaceuticals and Longeveron LLC 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 Longeveron LLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quoin Pharmaceuticals and Longeveron LLC.
Diversification Opportunities for Quoin Pharmaceuticals and Longeveron LLC
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Quoin and Longeveron is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Quoin Pharmaceuticals Ltd and Longeveron LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Longeveron LLC 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 Longeveron LLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Longeveron LLC has no effect on the direction of Quoin Pharmaceuticals i.e., Quoin Pharmaceuticals and Longeveron LLC go up and down completely randomly.
Pair Corralation between Quoin Pharmaceuticals and Longeveron LLC
Given the investment horizon of 90 days Quoin Pharmaceuticals Ltd is expected to under-perform the Longeveron LLC. But the stock apears to be less risky and, when comparing its historical volatility, Quoin Pharmaceuticals Ltd is 1.04 times less risky than Longeveron LLC. The stock trades about -0.5 of its potential returns per unit of risk. The Longeveron LLC is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 218.00 in Longeveron LLC on August 28, 2024 and sell it today you would lose (22.00) from holding Longeveron LLC or give up 10.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quoin Pharmaceuticals Ltd vs. Longeveron LLC
Performance |
| Timeline |
| Quoin Pharmaceuticals |
| Longeveron LLC |
Quoin Pharmaceuticals and Longeveron LLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quoin Pharmaceuticals and Longeveron LLC
The main advantage of trading using opposite Quoin Pharmaceuticals and Longeveron LLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quoin Pharmaceuticals position performs unexpectedly, Longeveron LLC 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 Longeveron LLC will offset losses from the drop in Longeveron LLC's long position.| Quoin Pharmaceuticals vs. Revelation Biosciences | Quoin Pharmaceuticals vs. Virax Biolabs Group | Quoin Pharmaceuticals vs. Neurobo Pharmaceuticals | Quoin Pharmaceuticals vs. Allarity Therapeutics |
| Longeveron LLC vs. Nutriband | Longeveron LLC vs. Quoin Pharmaceuticals Ltd | Longeveron LLC vs. RenovoRx | Longeveron LLC vs. Virax Biolabs Group |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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