Correlation Between Aquestive Therapeutics and Nextnav Acquisition
Can any of the company-specific risk be diversified away by investing in both Aquestive Therapeutics and Nextnav Acquisition 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 Nextnav Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquestive Therapeutics and Nextnav Acquisition Corp, you can compare the effects of market volatilities on Aquestive Therapeutics and Nextnav Acquisition 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 Nextnav Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquestive Therapeutics and Nextnav Acquisition.
Diversification Opportunities for Aquestive Therapeutics and Nextnav Acquisition
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aquestive and Nextnav is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Aquestive Therapeutics and Nextnav Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nextnav Acquisition Corp 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 Nextnav Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nextnav Acquisition Corp has no effect on the direction of Aquestive Therapeutics i.e., Aquestive Therapeutics and Nextnav Acquisition go up and down completely randomly.
Pair Corralation between Aquestive Therapeutics and Nextnav Acquisition
Given the investment horizon of 90 days Aquestive Therapeutics is expected to generate 1.64 times less return on investment than Nextnav Acquisition. In addition to that, Aquestive Therapeutics is 1.03 times more volatile than Nextnav Acquisition Corp. It trades about 0.08 of its total potential returns per unit of risk. Nextnav Acquisition Corp is currently generating about 0.13 per unit of volatility. If you would invest 396.00 in Nextnav Acquisition Corp on August 26, 2024 and sell it today you would earn a total of 1,191 from holding Nextnav Acquisition Corp or generate 300.76% 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. Nextnav Acquisition Corp
Performance |
| Timeline |
| Aquestive Therapeutics |
| Nextnav Acquisition Corp |
Aquestive Therapeutics and Nextnav Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquestive Therapeutics and Nextnav Acquisition
The main advantage of trading using opposite Aquestive Therapeutics and Nextnav Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquestive Therapeutics position performs unexpectedly, Nextnav Acquisition 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 Nextnav Acquisition will offset losses from the drop in Nextnav Acquisition's long position.| Aquestive Therapeutics vs. Capricor Therapeutics | Aquestive Therapeutics vs. Soleno Therapeutics | Aquestive Therapeutics vs. Bio Path Holdings | Aquestive Therapeutics vs. Moleculin Biotech |
| Nextnav Acquisition vs. GigaCloud Technology Class | Nextnav Acquisition vs. Arqit Quantum | Nextnav Acquisition vs. Telos Corp | Nextnav Acquisition vs. Cemtrex |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |