Correlation Between MYR and Aquestive Therapeutics
Can any of the company-specific risk be diversified away by investing in both MYR 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 MYR and Aquestive Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MYR Group and Aquestive Therapeutics, you can compare the effects of market volatilities on MYR 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 MYR with a short position of Aquestive Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of MYR and Aquestive Therapeutics.
Diversification Opportunities for MYR and Aquestive Therapeutics
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MYR and Aquestive is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding MYR Group and Aquestive Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aquestive Therapeutics and MYR 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 MYR Group 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 MYR i.e., MYR and Aquestive Therapeutics go up and down completely randomly.
Pair Corralation between MYR and Aquestive Therapeutics
Given the investment horizon of 90 days MYR is expected to generate 5.33 times less return on investment than Aquestive Therapeutics. But when comparing it to its historical volatility, MYR Group is 2.0 times less risky than Aquestive Therapeutics. It trades about 0.03 of its potential returns per unit of risk. Aquestive Therapeutics is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 196.00 in Aquestive Therapeutics on August 26, 2024 and sell it today you would earn a total of 260.00 from holding Aquestive Therapeutics or generate 132.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MYR Group vs. Aquestive Therapeutics
Performance |
| Timeline |
| MYR Group |
| Aquestive Therapeutics |
MYR and Aquestive Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MYR and Aquestive Therapeutics
The main advantage of trading using opposite MYR and Aquestive Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MYR 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.| MYR vs. Comfort Systems USA | MYR vs. Granite Construction Incorporated | MYR vs. Dycom Industries | MYR vs. MasTec Inc |
| Aquestive Therapeutics vs. Capricor Therapeutics | Aquestive Therapeutics vs. Akari Therapeutics PLC | Aquestive Therapeutics vs. Soleno Therapeutics | Aquestive Therapeutics vs. Bio Path 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |