Correlation Between Pacira BioSciences, and Aquestive Therapeutics
Can any of the company-specific risk be diversified away by investing in both Pacira BioSciences, 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 Pacira BioSciences, and Aquestive Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pacira BioSciences, and Aquestive Therapeutics, you can compare the effects of market volatilities on Pacira BioSciences, 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 Pacira BioSciences, with a short position of Aquestive Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pacira BioSciences, and Aquestive Therapeutics.
Diversification Opportunities for Pacira BioSciences, and Aquestive Therapeutics
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pacira and Aquestive is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Pacira BioSciences, and Aquestive Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aquestive Therapeutics and Pacira BioSciences, 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 Pacira BioSciences, 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 Pacira BioSciences, i.e., Pacira BioSciences, and Aquestive Therapeutics go up and down completely randomly.
Pair Corralation between Pacira BioSciences, and Aquestive Therapeutics
Given the investment horizon of 90 days Pacira BioSciences, is expected to under-perform the Aquestive Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Pacira BioSciences, is 1.52 times less risky than Aquestive Therapeutics. The stock trades about -0.04 of its potential returns per unit of risk. The Aquestive Therapeutics is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 91.00 in Aquestive Therapeutics on August 24, 2024 and sell it today you would earn a total of 365.00 from holding Aquestive Therapeutics or generate 401.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pacira BioSciences, vs. Aquestive Therapeutics
Performance |
| Timeline |
| Pacira BioSciences, |
| Aquestive Therapeutics |
Pacira BioSciences, and Aquestive Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pacira BioSciences, and Aquestive Therapeutics
The main advantage of trading using opposite Pacira BioSciences, and Aquestive Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pacira BioSciences, 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.| Pacira BioSciences, vs. Phibro Animal Health | Pacira BioSciences, vs. Dr Reddys Laboratories | Pacira BioSciences, vs. Collegium Pharmaceutical | Pacira BioSciences, vs. Prestige Brand Holdings |
| 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Transaction History View history of all your transactions and understand their impact on performance |