Correlation Between Quantumscape Corp and Replimune

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

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

Diversification Opportunities for Quantumscape Corp and Replimune

-0.14

Correlation Coefficient

Quantumscape Corp  Replimune

Good diversification

The 3 months correlation between Quantumscape and Replimune is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Quantumscape Corp and Replimune Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Replimune Group and Quantumscape Corp 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 Quantumscape Corp are associated (or correlated) with Replimune. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Replimune Group has no effect on the direction of Quantumscape Corp i.e., Quantumscape Corp and Replimune go up and down completely randomly.

Pair Corralation between Quantumscape Corp and Replimune

Allowing for the 90-day total investment horizon Quantumscape Corp is expected to generate 0.4 times more return on investment than Replimune. However, Quantumscape Corp is 2.5 times less risky than Replimune. It trades about 0.12 of its potential returns per unit of risk. Replimune Group is currently generating about 0.03 per unit of risk. If you would invest  1,005  in Quantumscape Corp on July 13, 2025 and sell it today you would earn a total of  465.00  from holding Quantumscape Corp or generate 46.27% return on investment over 90 days.

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

Quantumscape Corp  vs.  Replimune Group

Quantumscape Corp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Quantumscape Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Quantumscape Corp unveiled solid returns over the last few months and may actually be approaching a breakup point.

Replimune Group

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Replimune Group are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Replimune disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Quantumscape Corp and Replimune

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

The idea behind Quantumscape Corp and Replimune Group 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.