Correlation Between Aquestive Therapeutics and Elicio Therapeutics
Can any of the company-specific risk be diversified away by investing in both Aquestive Therapeutics and Elicio Therapeutics 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 Elicio Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquestive Therapeutics and Elicio Therapeutics, you can compare the effects of market volatilities on Aquestive Therapeutics and Elicio Therapeutics 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 Elicio Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquestive Therapeutics and Elicio Therapeutics.
Diversification Opportunities for Aquestive Therapeutics and Elicio Therapeutics
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aquestive and Elicio is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Aquestive Therapeutics and Elicio Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elicio Therapeutics 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 Elicio Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elicio Therapeutics has no effect on the direction of Aquestive Therapeutics i.e., Aquestive Therapeutics and Elicio Therapeutics go up and down completely randomly.
Pair Corralation between Aquestive Therapeutics and Elicio Therapeutics
Given the investment horizon of 90 days Aquestive Therapeutics is expected to under-perform the Elicio Therapeutics. In addition to that, Aquestive Therapeutics is 1.05 times more volatile than Elicio Therapeutics. It trades about -0.16 of its total potential returns per unit of risk. Elicio Therapeutics is currently generating about 0.14 per unit of volatility. If you would invest 460.00 in Elicio Therapeutics on August 24, 2024 and sell it today you would earn a total of 52.00 from holding Elicio Therapeutics or generate 11.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aquestive Therapeutics vs. Elicio Therapeutics
Performance |
| Timeline |
| Aquestive Therapeutics |
| Elicio Therapeutics |
Aquestive Therapeutics and Elicio Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquestive Therapeutics and Elicio Therapeutics
The main advantage of trading using opposite Aquestive Therapeutics and Elicio Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquestive Therapeutics position performs unexpectedly, Elicio Therapeutics 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 Elicio Therapeutics will offset losses from the drop in Elicio Therapeutics' long position.| Aquestive Therapeutics vs. Evoke Pharma | Aquestive Therapeutics vs. Dynavax Technologies | Aquestive Therapeutics vs. Amphastar P | Aquestive Therapeutics vs. Lantheus Holdings |
| Elicio Therapeutics vs. Perseus Mining Limited | Elicio Therapeutics vs. Aquestive Therapeutics | Elicio Therapeutics vs. LENSAR Inc | Elicio Therapeutics vs. Esperion Therapeutics |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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