Correlation Between STATE and Aquestive Therapeutics
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By analyzing existing cross correlation between STATE STREET P and Aquestive Therapeutics, you can compare the effects of market volatilities on STATE 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 STATE with a short position of Aquestive Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of STATE and Aquestive Therapeutics.
Diversification Opportunities for STATE and Aquestive Therapeutics
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between STATE and Aquestive is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding STATE STREET P and Aquestive Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aquestive Therapeutics and STATE 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 STATE STREET P 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 STATE i.e., STATE and Aquestive Therapeutics go up and down completely randomly.
Pair Corralation between STATE and Aquestive Therapeutics
Assuming the 90 days trading horizon STATE STREET P is expected to generate 0.12 times more return on investment than Aquestive Therapeutics. However, STATE STREET P is 8.47 times less risky than Aquestive Therapeutics. It trades about 0.2 of its potential returns per unit of risk. Aquestive Therapeutics is currently generating about -0.13 per unit of risk. If you would invest 8,565 in STATE STREET P on September 5, 2024 and sell it today you would earn a total of 191.00 from holding STATE STREET P or generate 2.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
STATE STREET P vs. Aquestive Therapeutics
Performance |
| Timeline |
| STATE STREET P |
| Aquestive Therapeutics |
STATE and Aquestive Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STATE and Aquestive Therapeutics
The main advantage of trading using opposite STATE and Aquestive Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STATE 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.| STATE vs. Aquestive Therapeutics | STATE vs. Sonida Senior Living | STATE vs. Merit Medical Systems | STATE vs. Esperion Therapeutics |
| 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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