Correlation Between AC Immune and Quoin Pharmaceuticals

Can any of the company-specific risk be diversified away by investing in both AC Immune 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 AC Immune and Quoin Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AC Immune and Quoin Pharmaceuticals Ltd, you can compare the effects of market volatilities on AC Immune 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 AC Immune with a short position of Quoin Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of AC Immune and Quoin Pharmaceuticals.

Diversification Opportunities for AC Immune and Quoin Pharmaceuticals

0.16

Correlation Coefficient

AC Immune  Quoin Pharmaceuticals

Average diversification

The 3 months correlation between ACIU and Quoin is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding AC Immune and Quoin Pharmaceuticals Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quoin Pharmaceuticals and AC Immune 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 AC Immune 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 AC Immune i.e., AC Immune and Quoin Pharmaceuticals go up and down completely randomly.

Pair Corralation between AC Immune and Quoin Pharmaceuticals

Given the investment horizon of 90 days AC Immune is expected to generate 0.25 times more return on investment than Quoin Pharmaceuticals. However, AC Immune is 3.98 times less risky than Quoin Pharmaceuticals. It trades about 0.03 of its potential returns per unit of risk. Quoin Pharmaceuticals Ltd is currently generating about -0.14 per unit of risk. If you would invest  271.00  in AC Immune on October 27, 2024 and sell it today you would earn a total of  2.00  from holding AC Immune or generate 0.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

AC Immune  vs.  Quoin Pharmaceuticals Ltd

AC Immune

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AC Immune has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward indicators, AC Immune is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Quoin Pharmaceuticals

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Quoin Pharmaceuticals Ltd has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with AC Immune and Quoin Pharmaceuticals

The main advantage of trading using opposite AC Immune and Quoin Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AC Immune 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.

The idea behind AC Immune and Quoin Pharmaceuticals Ltd pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.