Correlation Between Sunshine Biopharma and Aquestive Therapeutics
Can any of the company-specific risk be diversified away by investing in both Sunshine Biopharma 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 Sunshine Biopharma and Aquestive Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunshine Biopharma and Aquestive Therapeutics, you can compare the effects of market volatilities on Sunshine Biopharma 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 Sunshine Biopharma with a short position of Aquestive Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunshine Biopharma and Aquestive Therapeutics.
Diversification Opportunities for Sunshine Biopharma and Aquestive Therapeutics
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sunshine and Aquestive is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Sunshine Biopharma and Aquestive Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aquestive Therapeutics and Sunshine Biopharma 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 Sunshine Biopharma 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 Sunshine Biopharma i.e., Sunshine Biopharma and Aquestive Therapeutics go up and down completely randomly.
Pair Corralation between Sunshine Biopharma and Aquestive Therapeutics
Given the investment horizon of 90 days Sunshine Biopharma is expected to under-perform the Aquestive Therapeutics. In addition to that, Sunshine Biopharma is 1.7 times more volatile than Aquestive Therapeutics. It trades about -0.08 of its total potential returns per unit of risk. Aquestive Therapeutics is currently generating about 0.02 per unit of volatility. If you would invest 294.00 in Aquestive Therapeutics on November 28, 2024 and sell it today you would lose (14.00) from holding Aquestive Therapeutics or give up 4.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunshine Biopharma vs. Aquestive Therapeutics
Performance |
| Timeline |
| Sunshine Biopharma |
| Aquestive Therapeutics |
Sunshine Biopharma and Aquestive Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunshine Biopharma and Aquestive Therapeutics
The main advantage of trading using opposite Sunshine Biopharma and Aquestive Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunshine Biopharma 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.| Sunshine Biopharma vs. Shionogi Co Ltd | Sunshine Biopharma vs. China SXT Pharmaceuticals | Sunshine Biopharma vs. Shuttle Pharmaceuticals | Sunshine Biopharma vs. Lifecore Biomedical |
| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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