Correlation Between Esperion Therapeutics and AcuityAds Holdings
Can any of the company-specific risk be diversified away by investing in both Esperion Therapeutics and AcuityAds Holdings 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 AcuityAds Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Esperion Therapeutics and AcuityAds Holdings, you can compare the effects of market volatilities on Esperion Therapeutics and AcuityAds Holdings 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 AcuityAds Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Esperion Therapeutics and AcuityAds Holdings.
Diversification Opportunities for Esperion Therapeutics and AcuityAds Holdings
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Esperion and AcuityAds is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Esperion Therapeutics and AcuityAds Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AcuityAds Holdings 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 AcuityAds Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AcuityAds Holdings has no effect on the direction of Esperion Therapeutics i.e., Esperion Therapeutics and AcuityAds Holdings go up and down completely randomly.
Pair Corralation between Esperion Therapeutics and AcuityAds Holdings
If you would invest 200.00 in Esperion Therapeutics on September 5, 2024 and sell it today you would earn a total of 125.00 from holding Esperion Therapeutics or generate 62.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Esperion Therapeutics vs. AcuityAds Holdings
Performance |
| Timeline |
| Esperion Therapeutics |
| AcuityAds Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Esperion Therapeutics and AcuityAds Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Esperion Therapeutics and AcuityAds Holdings
The main advantage of trading using opposite Esperion Therapeutics and AcuityAds Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Esperion Therapeutics position performs unexpectedly, AcuityAds Holdings 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 AcuityAds Holdings will offset losses from the drop in AcuityAds Holdings' long position.| Esperion Therapeutics vs. Candel Therapeutics | Esperion Therapeutics vs. Cingulate Warrants | Esperion Therapeutics vs. Unicycive Therapeutics | Esperion Therapeutics vs. Cardio Diagnostics Holdings |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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