Correlation Between Aquestive Therapeutics and Drive Shack
Can any of the company-specific risk be diversified away by investing in both Aquestive Therapeutics and Drive Shack 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 Drive Shack into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquestive Therapeutics and Drive Shack, you can compare the effects of market volatilities on Aquestive Therapeutics and Drive Shack 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 Drive Shack. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquestive Therapeutics and Drive Shack.
Diversification Opportunities for Aquestive Therapeutics and Drive Shack
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aquestive and Drive is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Aquestive Therapeutics and Drive Shack in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Drive Shack 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 Drive Shack. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Drive Shack has no effect on the direction of Aquestive Therapeutics i.e., Aquestive Therapeutics and Drive Shack go up and down completely randomly.
Pair Corralation between Aquestive Therapeutics and Drive Shack
If you would invest 299.00 in Aquestive Therapeutics on September 3, 2024 and sell it today you would earn a total of 182.00 from holding Aquestive Therapeutics or generate 60.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.8% |
| Values | Daily Returns |
Aquestive Therapeutics vs. Drive Shack
Performance |
| Timeline |
| Aquestive Therapeutics |
| Drive Shack |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aquestive Therapeutics and Drive Shack Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquestive Therapeutics and Drive Shack
The main advantage of trading using opposite Aquestive Therapeutics and Drive Shack positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquestive Therapeutics position performs unexpectedly, Drive Shack 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 Drive Shack will offset losses from the drop in Drive Shack's long position.| Aquestive Therapeutics vs. Connect Biopharma Holdings | Aquestive Therapeutics vs. Acumen Pharmaceuticals | Aquestive Therapeutics vs. Nuvation Bio | Aquestive Therapeutics vs. Eledon Pharmaceuticals |
| Drive Shack vs. Bausch Lomb Corp | Drive Shack vs. Nike Inc | Drive Shack vs. National Vision Holdings | Drive Shack vs. Nyxoah |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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