Correlation Between General Cannabis and Aquestive Therapeutics
Can any of the company-specific risk be diversified away by investing in both General Cannabis and Aquestive Therapeutics 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 General Cannabis and Aquestive Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Cannabis Corp and Aquestive Therapeutics, you can compare the effects of market volatilities on General Cannabis and Aquestive Therapeutics 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 General Cannabis with a short position of Aquestive Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of General Cannabis and Aquestive Therapeutics.
Diversification Opportunities for General Cannabis and Aquestive Therapeutics
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between General and Aquestive is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding General Cannabis Corp and Aquestive Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aquestive Therapeutics and General Cannabis 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 General Cannabis Corp are associated (or correlated) with Aquestive Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aquestive Therapeutics has no effect on the direction of General Cannabis i.e., General Cannabis and Aquestive Therapeutics go up and down completely randomly.
Pair Corralation between General Cannabis and Aquestive Therapeutics
Given the investment horizon of 90 days General Cannabis Corp is expected to under-perform the Aquestive Therapeutics. In addition to that, General Cannabis is 1.59 times more volatile than Aquestive Therapeutics. It trades about 0.0 of its total potential returns per unit of risk. Aquestive Therapeutics is currently generating about 0.1 per unit of volatility. If you would invest 86.00 in Aquestive Therapeutics on September 1, 2024 and sell it today you would earn a total of 423.00 from holding Aquestive Therapeutics or generate 491.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Cannabis Corp vs. Aquestive Therapeutics
Performance |
| Timeline |
| General Cannabis Corp |
| Aquestive Therapeutics |
General Cannabis and Aquestive Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with General Cannabis and Aquestive Therapeutics
The main advantage of trading using opposite General Cannabis and Aquestive Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if General Cannabis position performs unexpectedly, Aquestive Therapeutics 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 Aquestive Therapeutics will offset losses from the drop in Aquestive Therapeutics' long position.| General Cannabis vs. Verano Holdings Corp | General Cannabis vs. 4Front Ventures Corp | General Cannabis vs. Ascend Wellness Holdings | General Cannabis vs. Medicine Man Technologies |
| Aquestive Therapeutics vs. Evoke Pharma | Aquestive Therapeutics vs. Dynavax Technologies | Aquestive Therapeutics vs. Amphastar P | Aquestive Therapeutics vs. Lantheus 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |