Correlation Between ImmuCell and Qsam Biosciences

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

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

Diversification Opportunities for ImmuCell and Qsam Biosciences

-0.37

Correlation Coefficient

ImmuCell  Qsam Biosciences

Very good diversification

The 3 months correlation between ImmuCell and Qsam is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding ImmuCell and Qsam Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qsam Biosciences and ImmuCell 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 ImmuCell are associated (or correlated) with Qsam Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qsam Biosciences has no effect on the direction of ImmuCell i.e., ImmuCell and Qsam Biosciences go up and down completely randomly.

Pair Corralation between ImmuCell and Qsam Biosciences

If you would invest  363.00  in ImmuCell on September 13, 2024 and sell it today you would earn a total of  101.00  from holding ImmuCell or generate 27.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

ImmuCell  vs.  Qsam Biosciences

ImmuCell

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ImmuCell are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile fundamental indicators, ImmuCell exhibited solid returns over the last few months and may actually be approaching a breakup point.

Qsam Biosciences

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with ImmuCell and Qsam Biosciences

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

The idea behind ImmuCell and Qsam Biosciences 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.