Correlation Between Esperion Therapeutics and Fresh2
Can any of the company-specific risk be diversified away by investing in both Esperion Therapeutics and Fresh2 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 Fresh2 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Esperion Therapeutics and Fresh2 Group, you can compare the effects of market volatilities on Esperion Therapeutics and Fresh2 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 Fresh2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Esperion Therapeutics and Fresh2.
Diversification Opportunities for Esperion Therapeutics and Fresh2
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Esperion and Fresh2 is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Esperion Therapeutics and Fresh2 Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fresh2 Group 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 Fresh2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fresh2 Group has no effect on the direction of Esperion Therapeutics i.e., Esperion Therapeutics and Fresh2 go up and down completely randomly.
Pair Corralation between Esperion Therapeutics and Fresh2
Given the investment horizon of 90 days Esperion Therapeutics is expected to generate 0.64 times more return on investment than Fresh2. However, Esperion Therapeutics is 1.56 times less risky than Fresh2. It trades about 0.0 of its potential returns per unit of risk. Fresh2 Group is currently generating about -0.04 per unit of risk. If you would invest 701.00 in Esperion Therapeutics on September 3, 2024 and sell it today you would lose (421.00) from holding Esperion Therapeutics or give up 60.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Esperion Therapeutics vs. Fresh2 Group
Performance |
| Timeline |
| Esperion Therapeutics |
| Fresh2 Group |
Esperion Therapeutics and Fresh2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Esperion Therapeutics and Fresh2
The main advantage of trading using opposite Esperion Therapeutics and Fresh2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Esperion Therapeutics position performs unexpectedly, Fresh2 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 Fresh2 will offset losses from the drop in Fresh2's long position.| Esperion Therapeutics vs. Elanco Animal Health | Esperion Therapeutics vs. SIGA Technologies | Esperion Therapeutics vs. Catalent | Esperion Therapeutics vs. ANI Pharmaceuticals |
| Fresh2 vs. Crinetics Pharmaceuticals | Fresh2 vs. Viridian Therapeutics | Fresh2 vs. Cytokinetics | Fresh2 vs. Structure Therapeutics American |
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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