Correlation Between Aquestive Therapeutics and Curaleaf Holdings
Can any of the company-specific risk be diversified away by investing in both Aquestive Therapeutics and Curaleaf Holdings 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 Curaleaf Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquestive Therapeutics and Curaleaf Holdings, you can compare the effects of market volatilities on Aquestive Therapeutics and Curaleaf Holdings 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 Curaleaf Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquestive Therapeutics and Curaleaf Holdings.
Diversification Opportunities for Aquestive Therapeutics and Curaleaf Holdings
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aquestive and Curaleaf is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Aquestive Therapeutics and Curaleaf Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Curaleaf Holdings 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 Curaleaf Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Curaleaf Holdings has no effect on the direction of Aquestive Therapeutics i.e., Aquestive Therapeutics and Curaleaf Holdings go up and down completely randomly.
Pair Corralation between Aquestive Therapeutics and Curaleaf Holdings
Given the investment horizon of 90 days Aquestive Therapeutics is expected to generate 0.44 times more return on investment than Curaleaf Holdings. However, Aquestive Therapeutics is 2.29 times less risky than Curaleaf Holdings. It trades about -0.12 of its potential returns per unit of risk. Curaleaf Holdings is currently generating about -0.18 per unit of risk. If you would invest 549.00 in Aquestive Therapeutics on August 28, 2024 and sell it today you would lose (68.00) from holding Aquestive Therapeutics or give up 12.39% 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. Curaleaf Holdings
Performance |
| Timeline |
| Aquestive Therapeutics |
| Curaleaf Holdings |
Aquestive Therapeutics and Curaleaf Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquestive Therapeutics and Curaleaf Holdings
The main advantage of trading using opposite Aquestive Therapeutics and Curaleaf Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquestive Therapeutics position performs unexpectedly, Curaleaf Holdings 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 Curaleaf Holdings will offset losses from the drop in Curaleaf Holdings' long position.| Aquestive Therapeutics vs. Capricor Therapeutics | Aquestive Therapeutics vs. Soleno Therapeutics | Aquestive Therapeutics vs. Bio Path Holdings | Aquestive Therapeutics vs. Moleculin Biotech |
| Curaleaf Holdings vs. Green Thumb Industries | Curaleaf Holdings vs. Cresco Labs | Curaleaf Holdings vs. Trulieve Cannabis Corp | Curaleaf Holdings vs. Cronos Group |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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