Correlation Between Aquestive Therapeutics and Bitcoin Depot

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

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

Diversification Opportunities for Aquestive Therapeutics and Bitcoin Depot

0.0

Correlation Coefficient

Aquestive Therapeutics  Bitcoin Depot

Pay attention - limited upside

The 3 months correlation between Aquestive and Bitcoin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aquestive Therapeutics and Bitcoin Depot in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitcoin Depot 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 Bitcoin Depot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitcoin Depot has no effect on the direction of Aquestive Therapeutics i.e., Aquestive Therapeutics and Bitcoin Depot go up and down completely randomly.

Pair Corralation between Aquestive Therapeutics and Bitcoin Depot

Given the investment horizon of 90 days Aquestive Therapeutics is expected to under-perform the Bitcoin Depot. But the stock apears to be less risky and, when comparing its historical volatility, Aquestive Therapeutics is 2.08 times less risky than Bitcoin Depot. The stock trades about -0.21 of its potential returns per unit of risk. The Bitcoin Depot is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  144.00  in Bitcoin Depot on October 26, 2024 and sell it today you would earn a total of  27.00  from holding Bitcoin Depot or generate 18.75% return on investment over 90 days.

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

Aquestive Therapeutics  vs.  Bitcoin Depot

Aquestive Therapeutics

Risk-Adjusted Performance

0 of 100

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 conflicting performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Bitcoin Depot

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Bitcoin Depot are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Bitcoin Depot displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Aquestive Therapeutics and Bitcoin Depot

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

The idea behind Aquestive Therapeutics and Bitcoin Depot 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.