Correlation Between Aquestive Therapeutics and Taiwan Semiconductor
Can any of the company-specific risk be diversified away by investing in both Aquestive Therapeutics and Taiwan Semiconductor 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 Taiwan Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquestive Therapeutics and Taiwan Semiconductor Manufacturing, you can compare the effects of market volatilities on Aquestive Therapeutics and Taiwan Semiconductor 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 Taiwan Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquestive Therapeutics and Taiwan Semiconductor.
Diversification Opportunities for Aquestive Therapeutics and Taiwan Semiconductor
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aquestive and Taiwan is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Aquestive Therapeutics and Taiwan Semiconductor Manufactu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taiwan Semiconductor 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 Taiwan Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taiwan Semiconductor has no effect on the direction of Aquestive Therapeutics i.e., Aquestive Therapeutics and Taiwan Semiconductor go up and down completely randomly.
Pair Corralation between Aquestive Therapeutics and Taiwan Semiconductor
Given the investment horizon of 90 days Aquestive Therapeutics is expected to generate 2.23 times more return on investment than Taiwan Semiconductor. However, Aquestive Therapeutics is 2.23 times more volatile than Taiwan Semiconductor Manufacturing. It trades about 0.07 of its potential returns per unit of risk. Taiwan Semiconductor Manufacturing is currently generating about 0.08 per unit of risk. If you would invest 208.00 in Aquestive Therapeutics on September 2, 2024 and sell it today you would earn a total of 301.00 from holding Aquestive Therapeutics or generate 144.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aquestive Therapeutics vs. Taiwan Semiconductor Manufactu
Performance |
| Timeline |
| Aquestive Therapeutics |
| Taiwan Semiconductor |
Aquestive Therapeutics and Taiwan Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquestive Therapeutics and Taiwan Semiconductor
The main advantage of trading using opposite Aquestive Therapeutics and Taiwan Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquestive Therapeutics position performs unexpectedly, Taiwan Semiconductor 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 Taiwan Semiconductor will offset losses from the drop in Taiwan Semiconductor's long position.| Aquestive Therapeutics vs. Evoke Pharma | Aquestive Therapeutics vs. Dynavax Technologies | Aquestive Therapeutics vs. Amphastar P | Aquestive Therapeutics vs. Lantheus Holdings |
| Taiwan Semiconductor vs. NVIDIA | Taiwan Semiconductor vs. Intel | Taiwan Semiconductor vs. Marvell Technology Group | Taiwan Semiconductor vs. Micron Technology |
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 Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |