Correlation Between Esperion Therapeutics and Joint Corp
Can any of the company-specific risk be diversified away by investing in both Esperion Therapeutics and Joint Corp 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 Joint Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Esperion Therapeutics and The Joint Corp, you can compare the effects of market volatilities on Esperion Therapeutics and Joint Corp 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 Joint Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Esperion Therapeutics and Joint Corp.
Diversification Opportunities for Esperion Therapeutics and Joint Corp
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Esperion and Joint is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Esperion Therapeutics and The Joint Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Joint Corp 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 Joint Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Joint Corp has no effect on the direction of Esperion Therapeutics i.e., Esperion Therapeutics and Joint Corp go up and down completely randomly.
Pair Corralation between Esperion Therapeutics and Joint Corp
Given the investment horizon of 90 days Esperion Therapeutics is expected to generate 1.47 times more return on investment than Joint Corp. However, Esperion Therapeutics is 1.47 times more volatile than The Joint Corp. It trades about 0.05 of its potential returns per unit of risk. The Joint Corp is currently generating about 0.0 per unit of risk. If you would invest 141.00 in Esperion Therapeutics on August 26, 2024 and sell it today you would earn a total of 111.00 from holding Esperion Therapeutics or generate 78.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Esperion Therapeutics vs. The Joint Corp
Performance |
| Timeline |
| Esperion Therapeutics |
| Joint Corp |
Esperion Therapeutics and Joint Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Esperion Therapeutics and Joint Corp
The main advantage of trading using opposite Esperion Therapeutics and Joint Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Esperion Therapeutics position performs unexpectedly, Joint Corp 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 Joint Corp will offset losses from the drop in Joint Corp's long position.| Esperion Therapeutics vs. Eliem Therapeutics | Esperion Therapeutics vs. HCW Biologics | Esperion Therapeutics vs. Scpharmaceuticals | Esperion Therapeutics vs. Milestone Pharmaceuticals |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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