Correlation Between Aquestive Therapeutics and QBE Insurance
Can any of the company-specific risk be diversified away by investing in both Aquestive Therapeutics and QBE Insurance 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 QBE Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquestive Therapeutics and QBE Insurance Group, you can compare the effects of market volatilities on Aquestive Therapeutics and QBE Insurance 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 QBE Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquestive Therapeutics and QBE Insurance.
Diversification Opportunities for Aquestive Therapeutics and QBE Insurance
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aquestive and QBE is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Aquestive Therapeutics and QBE Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QBE Insurance Group 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 QBE Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QBE Insurance Group has no effect on the direction of Aquestive Therapeutics i.e., Aquestive Therapeutics and QBE Insurance go up and down completely randomly.
Pair Corralation between Aquestive Therapeutics and QBE Insurance
Given the investment horizon of 90 days Aquestive Therapeutics is expected to generate 1.62 times more return on investment than QBE Insurance. However, Aquestive Therapeutics is 1.62 times more volatile than QBE Insurance Group. It trades about 0.08 of its potential returns per unit of risk. QBE Insurance Group is currently generating about 0.04 per unit of risk. If you would invest 90.00 in Aquestive Therapeutics on September 24, 2024 and sell it today you would earn a total of 269.00 from holding Aquestive Therapeutics or generate 298.89% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 75.1% |
Values | Daily Returns |
Aquestive Therapeutics vs. QBE Insurance Group
Performance |
Timeline |
Aquestive Therapeutics |
QBE Insurance Group |
Aquestive Therapeutics and QBE Insurance Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aquestive Therapeutics and QBE Insurance
The main advantage of trading using opposite Aquestive Therapeutics and QBE Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquestive Therapeutics position performs unexpectedly, QBE Insurance 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 QBE Insurance will offset losses from the drop in QBE Insurance's long position.Aquestive Therapeutics vs. Evoke Pharma | Aquestive Therapeutics vs. Dynavax Technologies | Aquestive Therapeutics vs. Amphastar P | Aquestive Therapeutics vs. Lantheus Holdings |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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