Correlation Between Longeveron LLC and Quoin Pharmaceuticals

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

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

Diversification Opportunities for Longeveron LLC and Quoin Pharmaceuticals

0.87

Correlation Coefficient

Longeveron LLC  Quoin Pharmaceuticals

Very poor diversification

The 3 months correlation between Longeveron and Quoin is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Longeveron LLC and Quoin Pharmaceuticals Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quoin Pharmaceuticals and Longeveron LLC 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 Longeveron LLC 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 Longeveron LLC i.e., Longeveron LLC and Quoin Pharmaceuticals go up and down completely randomly.

Pair Corralation between Longeveron LLC and Quoin Pharmaceuticals

Given the investment horizon of 90 days Longeveron LLC is expected to generate 0.43 times more return on investment than Quoin Pharmaceuticals. However, Longeveron LLC is 2.33 times less risky than Quoin Pharmaceuticals. It trades about -0.11 of its potential returns per unit of risk. Quoin Pharmaceuticals Ltd is currently generating about -0.09 per unit of risk. If you would invest  206.00  in Longeveron LLC on December 1, 2024 and sell it today you would lose (54.00) from holding Longeveron LLC or give up 26.21% of portfolio value over 90 days.

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

Longeveron LLC  vs.  Quoin Pharmaceuticals Ltd

Longeveron LLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Longeveron LLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm 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 Longeveron LLC and Quoin Pharmaceuticals

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

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 Stocks Directory module to find actively traded stocks across global markets.