Correlation Between Esperion Therapeutics and GoHealth
Can any of the company-specific risk be diversified away by investing in both Esperion Therapeutics and GoHealth 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 GoHealth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Esperion Therapeutics and GoHealth, you can compare the effects of market volatilities on Esperion Therapeutics and GoHealth 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 GoHealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Esperion Therapeutics and GoHealth.
Diversification Opportunities for Esperion Therapeutics and GoHealth
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Esperion and GoHealth is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Esperion Therapeutics and GoHealth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoHealth 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 GoHealth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GoHealth has no effect on the direction of Esperion Therapeutics i.e., Esperion Therapeutics and GoHealth go up and down completely randomly.
Pair Corralation between Esperion Therapeutics and GoHealth
Given the investment horizon of 90 days Esperion Therapeutics is expected to generate 1.13 times more return on investment than GoHealth. However, Esperion Therapeutics is 1.13 times more volatile than GoHealth. It trades about 0.01 of its potential returns per unit of risk. GoHealth is currently generating about 0.01 per unit of risk. If you would invest 560.00 in Esperion Therapeutics on September 3, 2024 and sell it today you would lose (250.00) from holding Esperion Therapeutics or give up 44.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Esperion Therapeutics vs. GoHealth
Performance |
| Timeline |
| Esperion Therapeutics |
| GoHealth |
Esperion Therapeutics and GoHealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Esperion Therapeutics and GoHealth
The main advantage of trading using opposite Esperion Therapeutics and GoHealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Esperion Therapeutics position performs unexpectedly, GoHealth 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 GoHealth will offset losses from the drop in GoHealth's long position.| Esperion Therapeutics vs. Elanco Animal Health | Esperion Therapeutics vs. SIGA Technologies | Esperion Therapeutics vs. Catalent | Esperion Therapeutics vs. ANI Pharmaceuticals |
| GoHealth vs. eHealth | GoHealth vs. Tian Ruixiang Holdings | GoHealth vs. Huize Holding | GoHealth vs. Selectquote |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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