Correlation Between Esperion Therapeutics and Evaxion Biotech
Can any of the company-specific risk be diversified away by investing in both Esperion Therapeutics and Evaxion Biotech 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 Evaxion Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Esperion Therapeutics and Evaxion Biotech AS, you can compare the effects of market volatilities on Esperion Therapeutics and Evaxion Biotech 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 Evaxion Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Esperion Therapeutics and Evaxion Biotech.
Diversification Opportunities for Esperion Therapeutics and Evaxion Biotech
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Esperion and Evaxion is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Esperion Therapeutics and Evaxion Biotech AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evaxion Biotech AS 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 Evaxion Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evaxion Biotech AS has no effect on the direction of Esperion Therapeutics i.e., Esperion Therapeutics and Evaxion Biotech go up and down completely randomly.
Pair Corralation between Esperion Therapeutics and Evaxion Biotech
Given the investment horizon of 90 days Esperion Therapeutics is expected to generate 0.64 times more return on investment than Evaxion Biotech. However, Esperion Therapeutics is 1.56 times less risky than Evaxion Biotech. It trades about 0.18 of its potential returns per unit of risk. Evaxion Biotech AS is currently generating about -0.28 per unit of risk. If you would invest 213.00 in Esperion Therapeutics on August 31, 2024 and sell it today you would earn a total of 41.00 from holding Esperion Therapeutics or generate 19.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Esperion Therapeutics vs. Evaxion Biotech AS
Performance |
| Timeline |
| Esperion Therapeutics |
| Evaxion Biotech AS |
Esperion Therapeutics and Evaxion Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Esperion Therapeutics and Evaxion Biotech
The main advantage of trading using opposite Esperion Therapeutics and Evaxion Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Esperion Therapeutics position performs unexpectedly, Evaxion Biotech 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 Evaxion Biotech will offset losses from the drop in Evaxion Biotech's long position.| Esperion Therapeutics vs. Bausch Health Companies | Esperion Therapeutics vs. Haleon plc | Esperion Therapeutics vs. Intracellular Th |
| Evaxion Biotech vs. Reviva Pharmaceuticals Holdings | Evaxion Biotech vs. ZyVersa Therapeutics | Evaxion Biotech vs. Unicycive Therapeutics | Evaxion Biotech vs. Quoin Pharmaceuticals Ltd |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |