Correlation Between Quoin Pharmaceuticals and Ibio

Can any of the company-specific risk be diversified away by investing in both Quoin Pharmaceuticals and Ibio 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 Ibio 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 Ibio Inc, you can compare the effects of market volatilities on Quoin Pharmaceuticals and Ibio 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 Ibio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quoin Pharmaceuticals and Ibio.

Diversification Opportunities for Quoin Pharmaceuticals and Ibio

0.45

Correlation Coefficient

Quoin Pharmaceuticals  Ibio

Very weak diversification

The 3 months correlation between Quoin and Ibio is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Quoin Pharmaceuticals Ltd and Ibio Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ibio Inc 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 Ibio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ibio Inc has no effect on the direction of Quoin Pharmaceuticals i.e., Quoin Pharmaceuticals and Ibio go up and down completely randomly.

Pair Corralation between Quoin Pharmaceuticals and Ibio

Given the investment horizon of 90 days Quoin Pharmaceuticals is expected to generate 1.33 times less return on investment than Ibio. In addition to that, Quoin Pharmaceuticals is 2.06 times more volatile than Ibio Inc. It trades about 0.1 of its total potential returns per unit of risk. Ibio Inc is currently generating about 0.26 per unit of volatility. If you would invest  236.00  in Ibio Inc on October 22, 2024 and sell it today you would earn a total of  47.00  from holding Ibio Inc or generate 19.92% return on investment over 90 days.

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

Quoin Pharmaceuticals Ltd  vs.  Ibio Inc

Quoin Pharmaceuticals

Risk-Adjusted Performance

0 of 100

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 latest abnormal performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Ibio Inc

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Ibio Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy forward indicators, Ibio 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 Ibio

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

The idea behind Quoin Pharmaceuticals Ltd and Ibio Inc 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.