Correlation Between Aquestive Therapeutics and Atco Mining
Can any of the company-specific risk be diversified away by investing in both Aquestive Therapeutics and Atco Mining 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 Atco Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquestive Therapeutics and Atco Mining, you can compare the effects of market volatilities on Aquestive Therapeutics and Atco Mining 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 Atco Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquestive Therapeutics and Atco Mining.
Diversification Opportunities for Aquestive Therapeutics and Atco Mining
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aquestive and Atco is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Aquestive Therapeutics and Atco Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atco Mining 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 Atco Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atco Mining has no effect on the direction of Aquestive Therapeutics i.e., Aquestive Therapeutics and Atco Mining go up and down completely randomly.
Pair Corralation between Aquestive Therapeutics and Atco Mining
Given the investment horizon of 90 days Aquestive Therapeutics is expected to under-perform the Atco Mining. But the stock apears to be less risky and, when comparing its historical volatility, Aquestive Therapeutics is 4.36 times less risky than Atco Mining. The stock trades about -0.17 of its potential returns per unit of risk. The Atco Mining is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1.44 in Atco Mining on August 25, 2024 and sell it today you would earn a total of 0.04 from holding Atco Mining or generate 2.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Aquestive Therapeutics vs. Atco Mining
Performance |
| Timeline |
| Aquestive Therapeutics |
| Atco Mining |
Aquestive Therapeutics and Atco Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquestive Therapeutics and Atco Mining
The main advantage of trading using opposite Aquestive Therapeutics and Atco Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquestive Therapeutics position performs unexpectedly, Atco Mining 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 Atco Mining will offset losses from the drop in Atco Mining's long position.| Aquestive Therapeutics vs. Capricor Therapeutics | Aquestive Therapeutics vs. Akari Therapeutics PLC | Aquestive Therapeutics vs. Soleno Therapeutics | Aquestive Therapeutics vs. Bio Path Holdings |
| Atco Mining vs. Aquestive Therapeutics | Atco Mining vs. FormFactor | Atco Mining vs. Flex | Atco Mining vs. ScanSource |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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