Correlation Between Quantum Medical and Benitec Biopharma

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

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

Diversification Opportunities for Quantum Medical and Benitec Biopharma

-0.08

Correlation Coefficient

Quantum Medical  Benitec Biopharma

Good diversification

The 3 months correlation between Quantum and Benitec is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Quantum Medical Transport and Benitec Biopharma Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benitec Biopharma and Quantum Medical 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 Quantum Medical Transport are associated (or correlated) with Benitec Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Benitec Biopharma has no effect on the direction of Quantum Medical i.e., Quantum Medical and Benitec Biopharma go up and down completely randomly.

Pair Corralation between Quantum Medical and Benitec Biopharma

Given the investment horizon of 90 days Quantum Medical Transport is expected to generate 29.51 times more return on investment than Benitec Biopharma. However, Quantum Medical is 29.51 times more volatile than Benitec Biopharma Ltd. It trades about 0.13 of its potential returns per unit of risk. Benitec Biopharma Ltd is currently generating about -0.01 per unit of risk. If you would invest  0.00  in Quantum Medical Transport on May 18, 2025 and sell it today you would earn a total of  0.01  from holding Quantum Medical Transport or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Quantum Medical Transport  vs.  Benitec Biopharma Ltd

Quantum Medical Transport

Risk-Adjusted Performance

Fair

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

Benitec Biopharma

Risk-Adjusted Performance

Weakest

Over the last 90 days Benitec Biopharma Ltd has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Benitec Biopharma is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Quantum Medical and Benitec Biopharma

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

The idea behind Quantum Medical Transport and Benitec Biopharma 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.