Correlation Between Aquestive Therapeutics and Occidental
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By analyzing existing cross correlation between Aquestive Therapeutics and Occidental Petroleum 645, you can compare the effects of market volatilities on Aquestive Therapeutics and Occidental 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 Occidental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquestive Therapeutics and Occidental.
Diversification Opportunities for Aquestive Therapeutics and Occidental
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aquestive and Occidental is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Aquestive Therapeutics and Occidental Petroleum 645 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Occidental Petroleum 645 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 Occidental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Occidental Petroleum 645 has no effect on the direction of Aquestive Therapeutics i.e., Aquestive Therapeutics and Occidental go up and down completely randomly.
Pair Corralation between Aquestive Therapeutics and Occidental
Given the investment horizon of 90 days Aquestive Therapeutics is expected to generate 8.15 times more return on investment than Occidental. However, Aquestive Therapeutics is 8.15 times more volatile than Occidental Petroleum 645. It trades about 0.11 of its potential returns per unit of risk. Occidental Petroleum 645 is currently generating about 0.03 per unit of risk. If you would invest 140.00 in Aquestive Therapeutics on September 4, 2024 and sell it today you would earn a total of 341.00 from holding Aquestive Therapeutics or generate 243.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.97% |
| Values | Daily Returns |
Aquestive Therapeutics vs. Occidental Petroleum 645
Performance |
| Timeline |
| Aquestive Therapeutics |
| Occidental Petroleum 645 |
Aquestive Therapeutics and Occidental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquestive Therapeutics and Occidental
The main advantage of trading using opposite Aquestive Therapeutics and Occidental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquestive Therapeutics position performs unexpectedly, Occidental 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 Occidental will offset losses from the drop in Occidental's long position.| Aquestive Therapeutics vs. Evoke Pharma | Aquestive Therapeutics vs. Dynavax Technologies | Aquestive Therapeutics vs. Amphastar P | Aquestive Therapeutics vs. Lantheus Holdings |
| Occidental vs. The Travelers Companies | Occidental vs. GE Aerospace | Occidental vs. Walmart | Occidental vs. Pfizer Inc |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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