Correlation Between Humacyte and Quantum Si

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

By analyzing existing cross correlation between Humacyte and Quantum Si incorporated, you can compare the effects of market volatilities on Humacyte and Quantum Si 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 Humacyte with a short position of Quantum Si. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humacyte and Quantum Si.

Diversification Opportunities for Humacyte and Quantum Si

0.52

Correlation Coefficient

Humacyte  Quantum Si

Very weak diversification

The 3 months correlation between Humacyte and Quantum is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Humacyte and Quantum Si incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quantum Si incorporated and Humacyte 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 Humacyte are associated (or correlated) with Quantum Si. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quantum Si incorporated has no effect on the direction of Humacyte i.e., Humacyte and Quantum Si go up and down completely randomly.

Pair Corralation between Humacyte and Quantum Si

Given the investment horizon of 90 days Humacyte is expected to under-perform the Quantum Si. But the stock apears to be less risky and, when comparing its historical volatility, Humacyte is 3.64 times less risky than Quantum Si. The stock trades about -0.03 of its potential returns per unit of risk. The Quantum Si incorporated is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  28.00  in Quantum Si incorporated on December 1, 2024 and sell it today you would earn a total of  21.00  from holding Quantum Si incorporated or generate 75.0% return on investment over 90 days.

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

Humacyte  vs.  Quantum Si incorporated

Humacyte

Risk-Adjusted Performance

Very Weak

Over the last 90 days Humacyte has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's primary indicators remain somewhat 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.

Quantum Si incorporated

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Quantum Si incorporated are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Quantum Si showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Humacyte and Quantum Si

The main advantage of trading using opposite Humacyte and Quantum Si positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humacyte position performs unexpectedly, Quantum Si 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 Quantum Si will offset losses from the drop in Quantum Si's long position.

The idea behind Humacyte and Quantum Si incorporated 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.

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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.