Correlation Between Esperion Therapeutics and Grocery Outlet
Can any of the company-specific risk be diversified away by investing in both Esperion Therapeutics and Grocery Outlet 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 Grocery Outlet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Esperion Therapeutics and Grocery Outlet Holding, you can compare the effects of market volatilities on Esperion Therapeutics and Grocery Outlet 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 Grocery Outlet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Esperion Therapeutics and Grocery Outlet.
Diversification Opportunities for Esperion Therapeutics and Grocery Outlet
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Esperion and Grocery is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Esperion Therapeutics and Grocery Outlet Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grocery Outlet Holding 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 Grocery Outlet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grocery Outlet Holding has no effect on the direction of Esperion Therapeutics i.e., Esperion Therapeutics and Grocery Outlet go up and down completely randomly.
Pair Corralation between Esperion Therapeutics and Grocery Outlet
Given the investment horizon of 90 days Esperion Therapeutics is expected to generate 2.46 times more return on investment than Grocery Outlet. However, Esperion Therapeutics is 2.46 times more volatile than Grocery Outlet Holding. It trades about 0.0 of its potential returns per unit of risk. Grocery Outlet Holding is currently generating about -0.01 per unit of risk. If you would invest 618.00 in Esperion Therapeutics on August 29, 2024 and sell it today you would lose (364.00) from holding Esperion Therapeutics or give up 58.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Esperion Therapeutics vs. Grocery Outlet Holding
Performance |
| Timeline |
| Esperion Therapeutics |
| Grocery Outlet Holding |
Esperion Therapeutics and Grocery Outlet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Esperion Therapeutics and Grocery Outlet
The main advantage of trading using opposite Esperion Therapeutics and Grocery Outlet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Esperion Therapeutics position performs unexpectedly, Grocery Outlet 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 Grocery Outlet will offset losses from the drop in Grocery Outlet's long position.| Esperion Therapeutics vs. Elanco Animal Health | Esperion Therapeutics vs. SIGA Technologies | Esperion Therapeutics vs. Catalent | Esperion Therapeutics vs. ANI Pharmaceuticals |
| Grocery Outlet vs. Village Super Market | Grocery Outlet vs. Sprouts Farmers Market | Grocery Outlet vs. Albertsons Companies | Grocery Outlet vs. Dingdong ADR |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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