Correlation Between Freight Technologies and Quoin Pharmaceuticals

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

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

Diversification Opportunities for Freight Technologies and Quoin Pharmaceuticals

0.72

Correlation Coefficient

Freight Technologies  Quoin Pharmaceuticals

Poor diversification

The 3 months correlation between Freight and Quoin is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Freight Technologies and Quoin Pharmaceuticals Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quoin Pharmaceuticals and Freight Technologies 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 Freight Technologies 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 Freight Technologies i.e., Freight Technologies and Quoin Pharmaceuticals go up and down completely randomly.

Pair Corralation between Freight Technologies and Quoin Pharmaceuticals

Given the investment horizon of 90 days Freight Technologies is expected to generate 1.42 times more return on investment than Quoin Pharmaceuticals. However, Freight Technologies is 1.42 times more volatile than Quoin Pharmaceuticals Ltd. It trades about -0.06 of its potential returns per unit of risk. Quoin Pharmaceuticals Ltd is currently generating about -0.19 per unit of risk. If you would invest  193.00  in Freight Technologies on December 29, 2024 and sell it today you would lose (82.00) from holding Freight Technologies or give up 42.49% of portfolio value over 90 days.

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

Freight Technologies  vs.  Quoin Pharmaceuticals Ltd

Freight Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Freight Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Quoin Pharmaceuticals

Risk-Adjusted Performance

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 April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Freight Technologies and Quoin Pharmaceuticals

The main advantage of trading using opposite Freight Technologies and Quoin Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freight Technologies 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 Freight Technologies 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.