Correlation Between Windtree Therapeutics and Quoin Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Windtree Therapeutics and Quoin Pharmaceuticals 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 Windtree Therapeutics and Quoin Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Windtree Therapeutics and Quoin Pharmaceuticals Ltd, you can compare the effects of market volatilities on Windtree Therapeutics and Quoin Pharmaceuticals 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 Windtree Therapeutics with a short position of Quoin Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Windtree Therapeutics and Quoin Pharmaceuticals.
Diversification Opportunities for Windtree Therapeutics and Quoin Pharmaceuticals
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Windtree and Quoin is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Windtree Therapeutics and Quoin Pharmaceuticals Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quoin Pharmaceuticals and Windtree Therapeutics 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 Windtree Therapeutics are associated (or correlated) with Quoin Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quoin Pharmaceuticals has no effect on the direction of Windtree Therapeutics i.e., Windtree Therapeutics and Quoin Pharmaceuticals go up and down completely randomly.
Pair Corralation between Windtree Therapeutics and Quoin Pharmaceuticals
Given the investment horizon of 90 days Windtree Therapeutics is expected to under-perform the Quoin Pharmaceuticals. In addition to that, Windtree Therapeutics is 2.22 times more volatile than Quoin Pharmaceuticals Ltd. It trades about -0.01 of its total potential returns per unit of risk. Quoin Pharmaceuticals Ltd is currently generating about 0.01 per unit of volatility. If you would invest 78.00 in Quoin Pharmaceuticals Ltd on August 29, 2024 and sell it today you would lose (18.09) from holding Quoin Pharmaceuticals Ltd or give up 23.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Windtree Therapeutics vs. Quoin Pharmaceuticals Ltd
Performance |
| Timeline |
| Windtree Therapeutics |
| Quoin Pharmaceuticals |
Windtree Therapeutics and Quoin Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Windtree Therapeutics and Quoin Pharmaceuticals
The main advantage of trading using opposite Windtree Therapeutics and Quoin Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Windtree Therapeutics position performs unexpectedly, Quoin Pharmaceuticals 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 Quoin Pharmaceuticals will offset losses from the drop in Quoin Pharmaceuticals' long position.| Windtree Therapeutics vs. Neurobo Pharmaceuticals | Windtree Therapeutics vs. Palisade Bio | Windtree Therapeutics vs. Lixte Biotechnology Holdings | Windtree Therapeutics vs. Avenue Therapeutics |
| Quoin Pharmaceuticals vs. Revelation Biosciences | Quoin Pharmaceuticals vs. Virax Biolabs Group | Quoin Pharmaceuticals vs. Neurobo Pharmaceuticals | Quoin Pharmaceuticals vs. Allarity Therapeutics |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |