Correlation Between Aquestive Therapeutics and SVELEV

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

By analyzing existing cross correlation between Aquestive Therapeutics and SVELEV 18 10 FEB 31, you can compare the effects of market volatilities on Aquestive Therapeutics and SVELEV 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 SVELEV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquestive Therapeutics and SVELEV.

Diversification Opportunities for Aquestive Therapeutics and SVELEV

0.13

Correlation Coefficient

Aquestive Therapeutics  SVELEV

Average diversification

The 3 months correlation between Aquestive and SVELEV is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Aquestive Therapeutics and SVELEV 18 10 FEB 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SVELEV 18 10 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 SVELEV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SVELEV 18 10 has no effect on the direction of Aquestive Therapeutics i.e., Aquestive Therapeutics and SVELEV go up and down completely randomly.

Pair Corralation between Aquestive Therapeutics and SVELEV

Given the investment horizon of 90 days Aquestive Therapeutics is expected to under-perform the SVELEV. In addition to that, Aquestive Therapeutics is 11.54 times more volatile than SVELEV 18 10 FEB 31. It trades about -0.09 of its total potential returns per unit of risk. SVELEV 18 10 FEB 31 is currently generating about -0.2 per unit of volatility. If you would invest  8,465  in SVELEV 18 10 FEB 31 on September 14, 2024 and sell it today you would lose (300.00) from holding SVELEV 18 10 FEB 31 or give up 3.54% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	84.13%
Values	Daily Returns

Aquestive Therapeutics  vs.  SVELEV 18 10 FEB 31

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 January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

SVELEV 18 10

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SVELEV 18 10 FEB 31 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, SVELEV is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Aquestive Therapeutics and SVELEV

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

The idea behind Aquestive Therapeutics and SVELEV 18 10 FEB 31 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.

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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.