Correlation Between Aquestive Therapeutics and Land Securities
Can any of the company-specific risk be diversified away by investing in both Aquestive Therapeutics and Land Securities 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 Land Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquestive Therapeutics and Land Securities Group, you can compare the effects of market volatilities on Aquestive Therapeutics and Land Securities 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 Land Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquestive Therapeutics and Land Securities.
Diversification Opportunities for Aquestive Therapeutics and Land Securities
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aquestive and Land is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Aquestive Therapeutics and Land Securities Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Land Securities Group 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 Land Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Land Securities Group has no effect on the direction of Aquestive Therapeutics i.e., Aquestive Therapeutics and Land Securities go up and down completely randomly.
Pair Corralation between Aquestive Therapeutics and Land Securities
Given the investment horizon of 90 days Aquestive Therapeutics is expected to generate 1.16 times more return on investment than Land Securities. However, Aquestive Therapeutics is 1.16 times more volatile than Land Securities Group. It trades about -0.06 of its potential returns per unit of risk. Land Securities Group is currently generating about -0.09 per unit of risk. If you would invest 549.00 in Aquestive Therapeutics on September 1, 2024 and sell it today you would lose (40.00) from holding Aquestive Therapeutics or give up 7.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aquestive Therapeutics vs. Land Securities Group
Performance |
| Timeline |
| Aquestive Therapeutics |
| Land Securities Group |
Aquestive Therapeutics and Land Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquestive Therapeutics and Land Securities
The main advantage of trading using opposite Aquestive Therapeutics and Land Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquestive Therapeutics position performs unexpectedly, Land Securities 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 Land Securities will offset losses from the drop in Land Securities' long position.| Aquestive Therapeutics vs. Evoke Pharma | Aquestive Therapeutics vs. Dynavax Technologies | Aquestive Therapeutics vs. Amphastar P | Aquestive Therapeutics vs. Lantheus Holdings |
| Land Securities vs. The Coca Cola | Land Securities vs. Sapiens International | Land Securities vs. Q2 Holdings | Land Securities vs. Cadence Design Systems |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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