Correlation Between Aquestive Therapeutics and DTRGR

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Can any of the company-specific risk be diversified away by investing in both Aquestive Therapeutics and DTRGR 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 DTRGR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquestive Therapeutics and DTRGR 25 14 DEC 31, you can compare the effects of market volatilities on Aquestive Therapeutics and DTRGR 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 DTRGR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquestive Therapeutics and DTRGR.

Diversification Opportunities for Aquestive Therapeutics and DTRGR

0.33
  Correlation Coefficient

Weak diversification

The 3 months correlation between Aquestive and DTRGR is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Aquestive Therapeutics and DTRGR 25 14 DEC 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DTRGR 25 14 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 DTRGR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DTRGR 25 14 has no effect on the direction of Aquestive Therapeutics i.e., Aquestive Therapeutics and DTRGR go up and down completely randomly.

Pair Corralation between Aquestive Therapeutics and DTRGR

Given the investment horizon of 90 days Aquestive Therapeutics is expected to generate 8.34 times more return on investment than DTRGR. However, Aquestive Therapeutics is 8.34 times more volatile than DTRGR 25 14 DEC 31. It trades about 0.08 of its potential returns per unit of risk. DTRGR 25 14 DEC 31 is currently generating about 0.04 per unit of risk. If you would invest  86.00  in Aquestive Therapeutics on September 14, 2024 and sell it today you would earn a total of  296.00  from holding Aquestive Therapeutics or generate 344.19% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy52.43%
ValuesDaily Returns

Aquestive Therapeutics  vs.  DTRGR 25 14 DEC 31

 Performance 
       Timeline  
Aquestive Therapeutics 

Risk-Adjusted Performance

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Over the last 90 days Aquestive Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.
DTRGR 25 14 

Risk-Adjusted Performance

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Weak
 
Strong
Very Weak
Over the last 90 days DTRGR 25 14 DEC 31 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, DTRGR is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Aquestive Therapeutics and DTRGR Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Aquestive Therapeutics and DTRGR

The main advantage of trading using opposite Aquestive Therapeutics and DTRGR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquestive Therapeutics position performs unexpectedly, DTRGR 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 DTRGR will offset losses from the drop in DTRGR's long position.
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The idea behind Aquestive Therapeutics and DTRGR 25 14 DEC 31 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.

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