Correlation Between Aquestive Therapeutics and Xtant Medical
Can any of the company-specific risk be diversified away by investing in both Aquestive Therapeutics and Xtant Medical 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 Xtant Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquestive Therapeutics and Xtant Medical Holdings, you can compare the effects of market volatilities on Aquestive Therapeutics and Xtant Medical 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 Xtant Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquestive Therapeutics and Xtant Medical.
Diversification Opportunities for Aquestive Therapeutics and Xtant Medical
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aquestive and Xtant is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Aquestive Therapeutics and Xtant Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtant Medical Holdings 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 Xtant Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtant Medical Holdings has no effect on the direction of Aquestive Therapeutics i.e., Aquestive Therapeutics and Xtant Medical go up and down completely randomly.
Pair Corralation between Aquestive Therapeutics and Xtant Medical
Given the investment horizon of 90 days Aquestive Therapeutics is expected to under-perform the Xtant Medical. In addition to that, Aquestive Therapeutics is 2.34 times more volatile than Xtant Medical Holdings. It trades about -0.26 of its total potential returns per unit of risk. Xtant Medical Holdings is currently generating about -0.59 per unit of volatility. If you would invest 47.00 in Xtant Medical Holdings on September 14, 2024 and sell it today you would lose (9.00) from holding Xtant Medical Holdings or give up 19.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aquestive Therapeutics vs. Xtant Medical Holdings
Performance |
| Timeline |
| Aquestive Therapeutics |
| Xtant Medical Holdings |
Aquestive Therapeutics and Xtant Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquestive Therapeutics and Xtant Medical
The main advantage of trading using opposite Aquestive Therapeutics and Xtant Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquestive Therapeutics position performs unexpectedly, Xtant Medical 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 Xtant Medical will offset losses from the drop in Xtant Medical's long position.| Aquestive Therapeutics vs. Evoke Pharma | Aquestive Therapeutics vs. Dynavax Technologies | Aquestive Therapeutics vs. Amphastar P | Aquestive Therapeutics vs. Lantheus Holdings |
| Xtant Medical vs. Avita Medical | Xtant Medical vs. Sight Sciences | Xtant Medical vs. Treace Medical Concepts | Xtant Medical vs. Neuropace |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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