Correlation Between Aquestive Therapeutics and Amphastar

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

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

Diversification Opportunities for Aquestive Therapeutics and Amphastar

0.64

Correlation Coefficient

Aquestive Therapeutics  Amphastar

Poor diversification

The 3 months correlation between Aquestive and Amphastar is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Aquestive Therapeutics and Amphastar P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amphastar P and Aquestive Therapeutics 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 Aquestive Therapeutics are associated (or correlated) with Amphastar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amphastar P has no effect on the direction of Aquestive Therapeutics i.e., Aquestive Therapeutics and Amphastar go up and down completely randomly.

Pair Corralation between Aquestive Therapeutics and Amphastar

Given the investment horizon of 90 days Aquestive Therapeutics is expected to generate 1.88 times more return on investment than Amphastar. However, Aquestive Therapeutics is 1.88 times more volatile than Amphastar P. It trades about -0.04 of its potential returns per unit of risk. Amphastar P is currently generating about -0.18 per unit of risk. If you would invest  356.00  in Aquestive Therapeutics on December 31, 2024 and sell it today you would lose (54.00) from holding Aquestive Therapeutics or give up 15.17% of portfolio value over 90 days.

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

Aquestive Therapeutics  vs.  Amphastar P

Aquestive Therapeutics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aquestive Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Amphastar P

Risk-Adjusted Performance

Very Weak

Over the last 90 days Amphastar P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in May 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Aquestive Therapeutics and Amphastar

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

The idea behind Aquestive Therapeutics and Amphastar P 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.