Correlation Between Aquestive Therapeutics and Amplifon SpA
Can any of the company-specific risk be diversified away by investing in both Aquestive Therapeutics and Amplifon SpA 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 Amplifon SpA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquestive Therapeutics and Amplifon SpA, you can compare the effects of market volatilities on Aquestive Therapeutics and Amplifon SpA 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 Amplifon SpA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquestive Therapeutics and Amplifon SpA.
Diversification Opportunities for Aquestive Therapeutics and Amplifon SpA
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aquestive and Amplifon is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Aquestive Therapeutics and Amplifon SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplifon SpA 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 Amplifon SpA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplifon SpA has no effect on the direction of Aquestive Therapeutics i.e., Aquestive Therapeutics and Amplifon SpA go up and down completely randomly.
Pair Corralation between Aquestive Therapeutics and Amplifon SpA
Given the investment horizon of 90 days Aquestive Therapeutics is expected to generate 2.48 times more return on investment than Amplifon SpA. However, Aquestive Therapeutics is 2.48 times more volatile than Amplifon SpA. It trades about 0.09 of its potential returns per unit of risk. Amplifon SpA is currently generating about 0.13 per unit of risk. If you would invest 210.00 in Aquestive Therapeutics on September 3, 2024 and sell it today you would earn a total of 299.00 from holding Aquestive Therapeutics or generate 142.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 37.25% |
| Values | Daily Returns |
Aquestive Therapeutics vs. Amplifon SpA
Performance |
| Timeline |
| Aquestive Therapeutics |
| Amplifon SpA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aquestive Therapeutics and Amplifon SpA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquestive Therapeutics and Amplifon SpA
The main advantage of trading using opposite Aquestive Therapeutics and Amplifon SpA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquestive Therapeutics position performs unexpectedly, Amplifon SpA 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 Amplifon SpA will offset losses from the drop in Amplifon SpA's long position.| Aquestive Therapeutics vs. Connect Biopharma Holdings | Aquestive Therapeutics vs. Acumen Pharmaceuticals | Aquestive Therapeutics vs. Nuvation Bio | Aquestive Therapeutics vs. Eledon Pharmaceuticals |
| Amplifon SpA vs. Sonida Senior Living | Amplifon SpA vs. Cumberland Pharmaceuticals | Amplifon SpA vs. Aquestive Therapeutics | Amplifon SpA vs. Cardinal Health |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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