Correlation Between Quoin Pharmaceuticals and Exela Technologies
Can any of the company-specific risk be diversified away by investing in both Quoin Pharmaceuticals and Exela Technologies 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 Exela Technologies 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 Exela Technologies Preferred, you can compare the effects of market volatilities on Quoin Pharmaceuticals and Exela Technologies 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 Exela Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quoin Pharmaceuticals and Exela Technologies.
Diversification Opportunities for Quoin Pharmaceuticals and Exela Technologies
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Quoin and Exela is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Quoin Pharmaceuticals Ltd and Exela Technologies Preferred in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exela Technologies 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 Exela Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exela Technologies has no effect on the direction of Quoin Pharmaceuticals i.e., Quoin Pharmaceuticals and Exela Technologies go up and down completely randomly.
Pair Corralation between Quoin Pharmaceuticals and Exela Technologies
Given the investment horizon of 90 days Quoin Pharmaceuticals Ltd is expected to under-perform the Exela Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Quoin Pharmaceuticals Ltd is 1.3 times less risky than Exela Technologies. The stock trades about -0.06 of its potential returns per unit of risk. The Exela Technologies Preferred is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 65,000 in Exela Technologies Preferred on August 24, 2024 and sell it today you would lose (64,928) from holding Exela Technologies Preferred or give up 99.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.79% |
| Values | Daily Returns |
Quoin Pharmaceuticals Ltd vs. Exela Technologies Preferred
Performance |
| Timeline |
| Quoin Pharmaceuticals |
| Exela Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Quoin Pharmaceuticals and Exela Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quoin Pharmaceuticals and Exela Technologies
The main advantage of trading using opposite Quoin Pharmaceuticals and Exela Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quoin Pharmaceuticals position performs unexpectedly, Exela Technologies 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 Exela Technologies will offset losses from the drop in Exela Technologies' long position.| Quoin Pharmaceuticals vs. Revelation Biosciences | Quoin Pharmaceuticals vs. Virax Biolabs Group | Quoin Pharmaceuticals vs. Neurobo Pharmaceuticals | Quoin Pharmaceuticals vs. Biodexa Pharmaceticals |
| Exela Technologies vs. Lytus Technologies Holdings | Exela Technologies vs. Quoin Pharmaceuticals Ltd | Exela Technologies vs. HeartCore Enterprises | Exela Technologies vs. Soluna Holdings Preferred |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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