Correlation Between Aquestive Therapeutics and Saia
Can any of the company-specific risk be diversified away by investing in both Aquestive Therapeutics and Saia 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 Saia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquestive Therapeutics and Saia Inc, you can compare the effects of market volatilities on Aquestive Therapeutics and Saia 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 Saia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquestive Therapeutics and Saia.
Diversification Opportunities for Aquestive Therapeutics and Saia
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aquestive and Saia is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Aquestive Therapeutics and Saia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saia Inc 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 Saia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saia Inc has no effect on the direction of Aquestive Therapeutics i.e., Aquestive Therapeutics and Saia go up and down completely randomly.
Pair Corralation between Aquestive Therapeutics and Saia
Given the investment horizon of 90 days Aquestive Therapeutics is expected to under-perform the Saia. In addition to that, Aquestive Therapeutics is 1.36 times more volatile than Saia Inc. It trades about -0.19 of its total potential returns per unit of risk. Saia Inc is currently generating about -0.18 per unit of volatility. If you would invest 54,236 in Saia Inc on December 4, 2024 and sell it today you would lose (15,202) from holding Saia Inc or give up 28.03% 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. Saia Inc
Performance |
Timeline |
Aquestive Therapeutics |
Saia Inc |
Aquestive Therapeutics and Saia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aquestive Therapeutics and Saia
The main advantage of trading using opposite Aquestive Therapeutics and Saia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquestive Therapeutics position performs unexpectedly, Saia 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 Saia will offset losses from the drop in Saia'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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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