Correlation Between Quoin Pharmaceuticals and Apexigen

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

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

Diversification Opportunities for Quoin Pharmaceuticals and Apexigen

0.32

Correlation Coefficient

Quoin Pharmaceuticals  Apexigen

Weak diversification

The 3 months correlation between Quoin and Apexigen is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Quoin Pharmaceuticals Ltd and Apexigen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apexigen and Quoin Pharmaceuticals 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 Quoin Pharmaceuticals Ltd are associated (or correlated) with Apexigen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apexigen has no effect on the direction of Quoin Pharmaceuticals i.e., Quoin Pharmaceuticals and Apexigen go up and down completely randomly.

Pair Corralation between Quoin Pharmaceuticals and Apexigen

If you would invest  51.00  in Quoin Pharmaceuticals Ltd on September 22, 2024 and sell it today you would earn a total of  6.00  from holding Quoin Pharmaceuticals Ltd or generate 11.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	1.56%
Values	Daily Returns

Quoin Pharmaceuticals Ltd  vs.  Apexigen

Quoin Pharmaceuticals

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Quoin Pharmaceuticals Ltd are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Quoin Pharmaceuticals showed solid returns over the last few months and may actually be approaching a breakup point.

Apexigen

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Apexigen has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Apexigen is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Quoin Pharmaceuticals and Apexigen

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

The idea behind Quoin Pharmaceuticals Ltd and Apexigen 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.