Correlation Between Aquestive Therapeutics and Cadeler AS
Can any of the company-specific risk be diversified away by investing in both Aquestive Therapeutics and Cadeler AS 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 Cadeler AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquestive Therapeutics and Cadeler AS, you can compare the effects of market volatilities on Aquestive Therapeutics and Cadeler AS 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 Cadeler AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquestive Therapeutics and Cadeler AS.
Diversification Opportunities for Aquestive Therapeutics and Cadeler AS
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aquestive and Cadeler is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Aquestive Therapeutics and Cadeler AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cadeler AS 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 Cadeler AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cadeler AS has no effect on the direction of Aquestive Therapeutics i.e., Aquestive Therapeutics and Cadeler AS go up and down completely randomly.
Pair Corralation between Aquestive Therapeutics and Cadeler AS
Given the investment horizon of 90 days Aquestive Therapeutics is expected to generate 1.99 times more return on investment than Cadeler AS. However, Aquestive Therapeutics is 1.99 times more volatile than Cadeler AS. It trades about -0.06 of its potential returns per unit of risk. Cadeler AS is currently generating about -0.18 per unit of risk. If you would invest 549.00 in Aquestive Therapeutics on September 1, 2024 and sell it today you would lose (40.00) from holding Aquestive Therapeutics or give up 7.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aquestive Therapeutics vs. Cadeler AS
Performance |
| Timeline |
| Aquestive Therapeutics |
| Cadeler AS |
Aquestive Therapeutics and Cadeler AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquestive Therapeutics and Cadeler AS
The main advantage of trading using opposite Aquestive Therapeutics and Cadeler AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquestive Therapeutics position performs unexpectedly, Cadeler AS 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 Cadeler AS will offset losses from the drop in Cadeler AS's long position.| Aquestive Therapeutics vs. Evoke Pharma | Aquestive Therapeutics vs. Dynavax Technologies | Aquestive Therapeutics vs. Amphastar P | Aquestive Therapeutics vs. Lantheus Holdings |
| Cadeler AS vs. Aquestive Therapeutics | Cadeler AS vs. Alvotech | Cadeler AS vs. Xponential Fitness | Cadeler AS vs. HUTCHMED DRC |
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 Stocks Directory module to find actively traded stocks across global markets.
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