Correlation Between Aquestive Therapeutics and 458140CA6

Can any of the company-specific risk be diversified away by investing in both Aquestive Therapeutics and 458140CA6 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 458140CA6 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aquestive Therapeutics and INTC 415 05 AUG 32, you can compare the effects of market volatilities on Aquestive Therapeutics and 458140CA6 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 458140CA6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquestive Therapeutics and 458140CA6.

Diversification Opportunities for Aquestive Therapeutics and 458140CA6

-0.04

Correlation Coefficient

Aquestive Therapeutics  458140CA6

Good diversification

The 3 months correlation between Aquestive and 458140CA6 is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Aquestive Therapeutics and INTC 415 05 AUG 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTC 415 05 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 458140CA6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTC 415 05 has no effect on the direction of Aquestive Therapeutics i.e., Aquestive Therapeutics and 458140CA6 go up and down completely randomly.

Pair Corralation between Aquestive Therapeutics and 458140CA6

Given the investment horizon of 90 days Aquestive Therapeutics is expected to under-perform the 458140CA6. In addition to that, Aquestive Therapeutics is 3.57 times more volatile than INTC 415 05 AUG 32. It trades about -0.1 of its total potential returns per unit of risk. INTC 415 05 AUG 32 is currently generating about 0.03 per unit of volatility. If you would invest  9,411  in INTC 415 05 AUG 32 on October 7, 2024 and sell it today you would earn a total of  149.00  from holding INTC 415 05 AUG 32 or generate 1.58% return on investment over 90 days.

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

Aquestive Therapeutics  vs.  INTC 415 05 AUG 32

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.

INTC 415 05

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in INTC 415 05 AUG 32 are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 458140CA6 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Aquestive Therapeutics and 458140CA6

The main advantage of trading using opposite Aquestive Therapeutics and 458140CA6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquestive Therapeutics position performs unexpectedly, 458140CA6 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 458140CA6 will offset losses from the drop in 458140CA6's long position.

The idea behind Aquestive Therapeutics and INTC 415 05 AUG 32 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.