Correlation Between Aquestive Therapeutics and Global Gas
Can any of the company-specific risk be diversified away by investing in both Aquestive Therapeutics and Global Gas 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 Global Gas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquestive Therapeutics and Global Gas, you can compare the effects of market volatilities on Aquestive Therapeutics and Global Gas 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 Global Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquestive Therapeutics and Global Gas.
Diversification Opportunities for Aquestive Therapeutics and Global Gas
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aquestive and Global is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Aquestive Therapeutics and Global Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Gas 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 Global Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Gas has no effect on the direction of Aquestive Therapeutics i.e., Aquestive Therapeutics and Global Gas go up and down completely randomly.
Pair Corralation between Aquestive Therapeutics and Global Gas
If you would invest 41.00 in Global Gas on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Global Gas or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Aquestive Therapeutics vs. Global Gas
Performance |
| Timeline |
| Aquestive Therapeutics |
| Global Gas |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aquestive Therapeutics and Global Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquestive Therapeutics and Global Gas
The main advantage of trading using opposite Aquestive Therapeutics and Global Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquestive Therapeutics position performs unexpectedly, Global Gas 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 Global Gas will offset losses from the drop in Global Gas' long position.| Aquestive Therapeutics vs. Evoke Pharma | Aquestive Therapeutics vs. Lantheus Holdings | Aquestive Therapeutics vs. ANI Pharmaceuticals | Aquestive Therapeutics vs. Ironwood Pharmaceuticals |
| Global Gas vs. Cardinal Health | Global Gas vs. Tandy Leather Factory | Global Gas vs. Aquestive Therapeutics | Global Gas vs. Under Armour C |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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