Correlation Between Cannara Biotech and Aquestive Therapeutics
Can any of the company-specific risk be diversified away by investing in both Cannara Biotech 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 Cannara Biotech and Aquestive Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cannara Biotech and Aquestive Therapeutics, you can compare the effects of market volatilities on Cannara Biotech 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 Cannara Biotech with a short position of Aquestive Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cannara Biotech and Aquestive Therapeutics.
Diversification Opportunities for Cannara Biotech and Aquestive Therapeutics
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cannara and Aquestive is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Cannara Biotech and Aquestive Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aquestive Therapeutics and Cannara Biotech 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 Cannara Biotech 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 Cannara Biotech i.e., Cannara Biotech and Aquestive Therapeutics go up and down completely randomly.
Pair Corralation between Cannara Biotech and Aquestive Therapeutics
Assuming the 90 days horizon Cannara Biotech is expected to generate 1.35 times more return on investment than Aquestive Therapeutics. However, Cannara Biotech is 1.35 times more volatile than Aquestive Therapeutics. It trades about 0.0 of its potential returns per unit of risk. Aquestive Therapeutics is currently generating about -0.06 per unit of risk. If you would invest 53.00 in Cannara Biotech on September 1, 2024 and sell it today you would lose (2.00) from holding Cannara Biotech or give up 3.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cannara Biotech vs. Aquestive Therapeutics
Performance |
| Timeline |
| Cannara Biotech |
| Aquestive Therapeutics |
Cannara Biotech and Aquestive Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cannara Biotech and Aquestive Therapeutics
The main advantage of trading using opposite Cannara Biotech and Aquestive Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cannara Biotech 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.| Cannara Biotech vs. Benchmark Botanics | Cannara Biotech vs. Speakeasy Cannabis Club | Cannara Biotech vs. City View Green | Cannara Biotech vs. BC Craft Supply |
| 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |