Correlation Between Nurix Therapeutics and QuantumSi

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

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

Diversification Opportunities for Nurix Therapeutics and QuantumSi

-0.64

Correlation Coefficient

Nurix Therapeutics  QuantumSi

Excellent diversification

The 3 months correlation between Nurix and QuantumSi is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Nurix Therapeutics and QuantumSi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QuantumSi and Nurix 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 Nurix Therapeutics are associated (or correlated) with QuantumSi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QuantumSi has no effect on the direction of Nurix Therapeutics i.e., Nurix Therapeutics and QuantumSi go up and down completely randomly.

Pair Corralation between Nurix Therapeutics and QuantumSi

Given the investment horizon of 90 days Nurix Therapeutics is expected to under-perform the QuantumSi. But the stock apears to be less risky and, when comparing its historical volatility, Nurix Therapeutics is 9.07 times less risky than QuantumSi. The stock trades about -0.08 of its potential returns per unit of risk. The QuantumSi is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  199.00  in QuantumSi on October 10, 2024 and sell it today you would earn a total of  65.00  from holding QuantumSi or generate 32.66% return on investment over 90 days.

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

Nurix Therapeutics  vs.  QuantumSi

Nurix Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nurix Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

QuantumSi

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in QuantumSi are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, QuantumSi demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nurix Therapeutics and QuantumSi

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

The idea behind Nurix Therapeutics and QuantumSi 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.