Correlation Between Aquestive Therapeutics and KLX
Can any of the company-specific risk be diversified away by investing in both Aquestive Therapeutics and KLX 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 KLX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquestive Therapeutics and KLX Inc, you can compare the effects of market volatilities on Aquestive Therapeutics and KLX 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 KLX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquestive Therapeutics and KLX.
Diversification Opportunities for Aquestive Therapeutics and KLX
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aquestive and KLX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aquestive Therapeutics and KLX Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLX Inc 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 KLX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLX Inc has no effect on the direction of Aquestive Therapeutics i.e., Aquestive Therapeutics and KLX go up and down completely randomly.
Pair Corralation between Aquestive Therapeutics and KLX
If you would invest (100.00) in KLX Inc on September 15, 2024 and sell it today you would earn a total of 100.00 from holding KLX Inc or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Aquestive Therapeutics vs. KLX Inc
Performance |
| Timeline |
| Aquestive Therapeutics |
| KLX Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aquestive Therapeutics and KLX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquestive Therapeutics and KLX
The main advantage of trading using opposite Aquestive Therapeutics and KLX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquestive Therapeutics position performs unexpectedly, KLX 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 KLX will offset losses from the drop in KLX's long position.| Aquestive Therapeutics vs. Emergent Biosolutions | Aquestive Therapeutics vs. Bausch Health Companies | Aquestive Therapeutics vs. Neurocrine Biosciences | Aquestive Therapeutics vs. Teva Pharma Industries |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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