Correlation Between Cingulate Warrants and Esperion Therapeutics
Can any of the company-specific risk be diversified away by investing in both Cingulate Warrants and Esperion 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 Cingulate Warrants and Esperion Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cingulate Warrants and Esperion Therapeutics, you can compare the effects of market volatilities on Cingulate Warrants and Esperion 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 Cingulate Warrants with a short position of Esperion Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cingulate Warrants and Esperion Therapeutics.
Diversification Opportunities for Cingulate Warrants and Esperion Therapeutics
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cingulate and Esperion is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Cingulate Warrants and Esperion Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Esperion Therapeutics and Cingulate Warrants 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 Cingulate Warrants are associated (or correlated) with Esperion Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Esperion Therapeutics has no effect on the direction of Cingulate Warrants i.e., Cingulate Warrants and Esperion Therapeutics go up and down completely randomly.
Pair Corralation between Cingulate Warrants and Esperion Therapeutics
Assuming the 90 days horizon Cingulate Warrants is expected to generate 1.93 times less return on investment than Esperion Therapeutics. In addition to that, Cingulate Warrants is 2.38 times more volatile than Esperion Therapeutics. It trades about 0.03 of its total potential returns per unit of risk. Esperion Therapeutics is currently generating about 0.15 per unit of volatility. If you would invest 252.00 in Esperion Therapeutics on September 12, 2024 and sell it today you would earn a total of 52.00 from holding Esperion Therapeutics or generate 20.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Cingulate Warrants vs. Esperion Therapeutics
Performance |
| Timeline |
| Cingulate Warrants |
| Esperion Therapeutics |
Cingulate Warrants and Esperion Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cingulate Warrants and Esperion Therapeutics
The main advantage of trading using opposite Cingulate Warrants and Esperion Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cingulate Warrants position performs unexpectedly, Esperion 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 Esperion Therapeutics will offset losses from the drop in Esperion Therapeutics' long position.| Cingulate Warrants vs. Equillium | Cingulate Warrants vs. DiaMedica Therapeutics | Cingulate Warrants vs. Valneva SE ADR | Cingulate Warrants vs. Vivani Medical |
| Esperion Therapeutics vs. Evoke Pharma | Esperion Therapeutics vs. Lantheus Holdings | Esperion Therapeutics vs. ANI Pharmaceuticals | Esperion Therapeutics vs. Ironwood 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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