Correlation Between Esperion Therapeutics and Dyne Therapeutics
Can any of the company-specific risk be diversified away by investing in both Esperion Therapeutics and Dyne 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 Esperion Therapeutics and Dyne Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Esperion Therapeutics and Dyne Therapeutics, you can compare the effects of market volatilities on Esperion Therapeutics and Dyne 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 Esperion Therapeutics with a short position of Dyne Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Esperion Therapeutics and Dyne Therapeutics.
Diversification Opportunities for Esperion Therapeutics and Dyne Therapeutics
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Esperion and Dyne is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Esperion Therapeutics and Dyne Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dyne Therapeutics 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 Dyne Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dyne Therapeutics has no effect on the direction of Esperion Therapeutics i.e., Esperion Therapeutics and Dyne Therapeutics go up and down completely randomly.
Pair Corralation between Esperion Therapeutics and Dyne Therapeutics
Given the investment horizon of 90 days Esperion Therapeutics is expected to generate 5.09 times less return on investment than Dyne Therapeutics. In addition to that, Esperion Therapeutics is 1.19 times more volatile than Dyne Therapeutics. It trades about 0.01 of its total potential returns per unit of risk. Dyne Therapeutics is currently generating about 0.06 per unit of volatility. If you would invest 1,165 in Dyne Therapeutics on September 2, 2024 and sell it today you would earn a total of 1,896 from holding Dyne Therapeutics or generate 162.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Esperion Therapeutics vs. Dyne Therapeutics
Performance |
| Timeline |
| Esperion Therapeutics |
| Dyne Therapeutics |
Esperion Therapeutics and Dyne Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Esperion Therapeutics and Dyne Therapeutics
The main advantage of trading using opposite Esperion Therapeutics and Dyne Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Esperion Therapeutics position performs unexpectedly, Dyne 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 Dyne Therapeutics will offset losses from the drop in Dyne Therapeutics' long position.| Esperion Therapeutics vs. Elanco Animal Health | Esperion Therapeutics vs. SIGA Technologies | Esperion Therapeutics vs. Catalent | Esperion Therapeutics vs. ANI Pharmaceuticals |
| Dyne Therapeutics vs. Tff Pharmaceuticals | Dyne Therapeutics vs. Eliem Therapeutics | Dyne Therapeutics vs. Inhibrx | Dyne Therapeutics vs. Enliven Therapeutics |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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