Correlation Between Canlan Ice and Aquestive Therapeutics
Can any of the company-specific risk be diversified away by investing in both Canlan Ice 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 Canlan Ice and Aquestive Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canlan Ice Sports and Aquestive Therapeutics, you can compare the effects of market volatilities on Canlan Ice 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 Canlan Ice with a short position of Aquestive Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Aquestive Therapeutics.
Diversification Opportunities for Canlan Ice and Aquestive Therapeutics
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Canlan and Aquestive is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and Aquestive Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aquestive Therapeutics and Canlan Ice 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 Canlan Ice Sports 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 Canlan Ice i.e., Canlan Ice and Aquestive Therapeutics go up and down completely randomly.
Pair Corralation between Canlan Ice and Aquestive Therapeutics
If you would invest 297.00 in Canlan Ice Sports on September 24, 2024 and sell it today you would earn a total of 0.00 from holding Canlan Ice Sports or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Canlan Ice Sports vs. Aquestive Therapeutics
Performance |
Timeline |
Canlan Ice Sports |
Aquestive Therapeutics |
Canlan Ice and Aquestive Therapeutics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Canlan Ice and Aquestive Therapeutics
The main advantage of trading using opposite Canlan Ice and Aquestive Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice 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.Canlan Ice vs. Shimano Inc ADR | Canlan Ice vs. Hasbro Inc | Canlan Ice vs. YETI Holdings | Canlan Ice vs. Shimano |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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