Correlation Between Esperion Therapeutics and Clever Leaves
Can any of the company-specific risk be diversified away by investing in both Esperion Therapeutics and Clever Leaves 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 Esperion Therapeutics and Clever Leaves into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Esperion Therapeutics and Clever Leaves Holdings, you can compare the effects of market volatilities on Esperion Therapeutics and Clever Leaves 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 Esperion Therapeutics with a short position of Clever Leaves. Check out your portfolio center. Please also check ongoing floating volatility patterns of Esperion Therapeutics and Clever Leaves.
Diversification Opportunities for Esperion Therapeutics and Clever Leaves
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Esperion and Clever is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Esperion Therapeutics and Clever Leaves Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clever Leaves Holdings and Esperion Therapeutics 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 Esperion Therapeutics are associated (or correlated) with Clever Leaves. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clever Leaves Holdings has no effect on the direction of Esperion Therapeutics i.e., Esperion Therapeutics and Clever Leaves go up and down completely randomly.
Pair Corralation between Esperion Therapeutics and Clever Leaves
If you would invest 154.00 in Esperion Therapeutics on August 29, 2024 and sell it today you would earn a total of 94.00 from holding Esperion Therapeutics or generate 61.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
Esperion Therapeutics vs. Clever Leaves Holdings
Performance |
| Timeline |
| Esperion Therapeutics |
| Clever Leaves Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Esperion Therapeutics and Clever Leaves Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Esperion Therapeutics and Clever Leaves
The main advantage of trading using opposite Esperion Therapeutics and Clever Leaves positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Esperion Therapeutics position performs unexpectedly, Clever Leaves 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 Clever Leaves will offset losses from the drop in Clever Leaves' long position.| Esperion Therapeutics vs. Elanco Animal Health | Esperion Therapeutics vs. SIGA Technologies | Esperion Therapeutics vs. Catalent | Esperion Therapeutics vs. ANI Pharmaceuticals |
| Clever Leaves vs. Clever Leaves Holdings | Clever Leaves vs. CannBioRx Life Sciences | Clever Leaves vs. Clene Inc | Clever Leaves vs. CuriosityStream |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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