Correlation Between Cingulate Warrants and Quoin Pharmaceuticals

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

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

Diversification Opportunities for Cingulate Warrants and Quoin Pharmaceuticals

-0.51

Correlation Coefficient

Cingulate Warrants  Quoin Pharmaceuticals

Excellent diversification

The 3 months correlation between Cingulate and Quoin is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Cingulate Warrants and Quoin Pharmaceuticals Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quoin Pharmaceuticals and Cingulate Warrants 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 Cingulate Warrants 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 Cingulate Warrants i.e., Cingulate Warrants and Quoin Pharmaceuticals go up and down completely randomly.

Pair Corralation between Cingulate Warrants and Quoin Pharmaceuticals

Assuming the 90 days horizon Cingulate Warrants is expected to generate 1.35 times less return on investment than Quoin Pharmaceuticals. In addition to that, Cingulate Warrants is 2.62 times more volatile than Quoin Pharmaceuticals Ltd. It trades about 0.03 of its total potential returns per unit of risk. Quoin Pharmaceuticals Ltd is currently generating about 0.12 per unit of volatility. If you would invest  64.00  in Quoin Pharmaceuticals Ltd on September 12, 2024 and sell it today you would earn a total of  9.00  from holding Quoin Pharmaceuticals Ltd or generate 14.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.24%
Values	Daily Returns

Cingulate Warrants  vs.  Quoin Pharmaceuticals Ltd

Cingulate Warrants

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cingulate Warrants has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly weak technical and fundamental indicators, Cingulate Warrants may actually be approaching a critical reversion point that can send shares even higher in January 2025.

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 weak basic indicators, Quoin Pharmaceuticals showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cingulate Warrants and Quoin Pharmaceuticals

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

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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.