Correlation Between Aquestive Therapeutics and Shuttle Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Aquestive Therapeutics and Shuttle Pharmaceuticals 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 Shuttle Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquestive Therapeutics and Shuttle Pharmaceuticals, you can compare the effects of market volatilities on Aquestive Therapeutics and Shuttle Pharmaceuticals 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 Shuttle Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquestive Therapeutics and Shuttle Pharmaceuticals.
Diversification Opportunities for Aquestive Therapeutics and Shuttle Pharmaceuticals
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aquestive and Shuttle is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Aquestive Therapeutics and Shuttle Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuttle Pharmaceuticals 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 Shuttle Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shuttle Pharmaceuticals has no effect on the direction of Aquestive Therapeutics i.e., Aquestive Therapeutics and Shuttle Pharmaceuticals go up and down completely randomly.
Pair Corralation between Aquestive Therapeutics and Shuttle Pharmaceuticals
Given the investment horizon of 90 days Aquestive Therapeutics is expected to generate 0.82 times more return on investment than Shuttle Pharmaceuticals. However, Aquestive Therapeutics is 1.22 times less risky than Shuttle Pharmaceuticals. It trades about 0.09 of its potential returns per unit of risk. Shuttle Pharmaceuticals is currently generating about -0.08 per unit of risk. If you would invest 91.00 in Aquestive Therapeutics on August 24, 2024 and sell it today you would earn a total of 365.00 from holding Aquestive Therapeutics or generate 401.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aquestive Therapeutics vs. Shuttle Pharmaceuticals
Performance |
| Timeline |
| Aquestive Therapeutics |
| Shuttle Pharmaceuticals |
Aquestive Therapeutics and Shuttle Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquestive Therapeutics and Shuttle Pharmaceuticals
The main advantage of trading using opposite Aquestive Therapeutics and Shuttle Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquestive Therapeutics position performs unexpectedly, Shuttle Pharmaceuticals 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 Shuttle Pharmaceuticals will offset losses from the drop in Shuttle Pharmaceuticals' long position.| Aquestive Therapeutics vs. Evoke Pharma | Aquestive Therapeutics vs. Dynavax Technologies | Aquestive Therapeutics vs. Amphastar P | Aquestive Therapeutics vs. Lantheus Holdings |
| Shuttle Pharmaceuticals vs. Lifecore Biomedical | Shuttle Pharmaceuticals vs. Catalent | Shuttle Pharmaceuticals vs. Tilray Inc | Shuttle Pharmaceuticals vs. Organogenesis Holdings |
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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