Correlation Between Esperion Therapeutics and Mainz Biomed
Can any of the company-specific risk be diversified away by investing in both Esperion Therapeutics and Mainz Biomed 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 Mainz Biomed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Esperion Therapeutics and Mainz Biomed BV, you can compare the effects of market volatilities on Esperion Therapeutics and Mainz Biomed 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 Mainz Biomed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Esperion Therapeutics and Mainz Biomed.
Diversification Opportunities for Esperion Therapeutics and Mainz Biomed
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Esperion and Mainz is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Esperion Therapeutics and Mainz Biomed BV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainz Biomed BV 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 Mainz Biomed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainz Biomed BV has no effect on the direction of Esperion Therapeutics i.e., Esperion Therapeutics and Mainz Biomed go up and down completely randomly.
Pair Corralation between Esperion Therapeutics and Mainz Biomed
Given the investment horizon of 90 days Esperion Therapeutics is expected to generate 0.81 times more return on investment than Mainz Biomed. However, Esperion Therapeutics is 1.24 times less risky than Mainz Biomed. It trades about 0.01 of its potential returns per unit of risk. Mainz Biomed BV is currently generating about -0.06 per unit of risk. If you would invest 537.00 in Esperion Therapeutics on September 1, 2024 and sell it today you would lose (257.00) from holding Esperion Therapeutics or give up 47.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Esperion Therapeutics vs. Mainz Biomed BV
Performance |
| Timeline |
| Esperion Therapeutics |
| Mainz Biomed BV |
Esperion Therapeutics and Mainz Biomed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Esperion Therapeutics and Mainz Biomed
The main advantage of trading using opposite Esperion Therapeutics and Mainz Biomed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Esperion Therapeutics position performs unexpectedly, Mainz Biomed 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 Mainz Biomed will offset losses from the drop in Mainz Biomed's long position.| Esperion Therapeutics vs. Tff Pharmaceuticals | Esperion Therapeutics vs. Eliem Therapeutics | Esperion Therapeutics vs. Inhibrx | Esperion Therapeutics vs. Enliven Therapeutics |
| Mainz Biomed vs. Applied DNA Sciences | Mainz Biomed vs. Neuronetics | Mainz Biomed vs. Prenetics Global | Mainz Biomed vs. Fonar |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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