Correlation Between Occidental and Aquestive Therapeutics
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By analyzing existing cross correlation between Occidental Petroleum 645 and Aquestive Therapeutics, you can compare the effects of market volatilities on Occidental 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 Occidental with a short position of Aquestive Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Occidental and Aquestive Therapeutics.
Diversification Opportunities for Occidental and Aquestive Therapeutics
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Occidental and Aquestive is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Occidental Petroleum 645 and Aquestive Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aquestive Therapeutics and Occidental 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 Occidental Petroleum 645 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 Occidental i.e., Occidental and Aquestive Therapeutics go up and down completely randomly.
Pair Corralation between Occidental and Aquestive Therapeutics
Assuming the 90 days trading horizon Occidental is expected to generate 1.12 times less return on investment than Aquestive Therapeutics. But when comparing it to its historical volatility, Occidental Petroleum 645 is 6.26 times less risky than Aquestive Therapeutics. It trades about 0.05 of its potential returns per unit of risk. Aquestive Therapeutics is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 515.00 in Aquestive Therapeutics on September 3, 2024 and sell it today you would lose (6.00) from holding Aquestive Therapeutics or give up 1.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Occidental Petroleum 645 vs. Aquestive Therapeutics
Performance |
| Timeline |
| Occidental Petroleum 645 |
| Aquestive Therapeutics |
Occidental and Aquestive Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Occidental and Aquestive Therapeutics
The main advantage of trading using opposite Occidental and Aquestive Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Occidental 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.| Occidental vs. Aquestive Therapeutics | Occidental vs. Grocery Outlet Holding | Occidental vs. Merit Medical Systems | Occidental vs. Cumberland Pharmaceuticals |
| Aquestive Therapeutics vs. Connect Biopharma Holdings | Aquestive Therapeutics vs. Acumen Pharmaceuticals | Aquestive Therapeutics vs. Nuvation Bio | Aquestive Therapeutics vs. Eledon Pharmaceuticals |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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