Correlation Between Esperion Therapeutics and Onconetix
Can any of the company-specific risk be diversified away by investing in both Esperion Therapeutics and Onconetix 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 Onconetix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Esperion Therapeutics and Onconetix, you can compare the effects of market volatilities on Esperion Therapeutics and Onconetix 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 Onconetix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Esperion Therapeutics and Onconetix.
Diversification Opportunities for Esperion Therapeutics and Onconetix
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Esperion and Onconetix is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Esperion Therapeutics and Onconetix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Onconetix 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 Onconetix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Onconetix has no effect on the direction of Esperion Therapeutics i.e., Esperion Therapeutics and Onconetix go up and down completely randomly.
Pair Corralation between Esperion Therapeutics and Onconetix
Given the investment horizon of 90 days Esperion Therapeutics is expected to generate 0.56 times more return on investment than Onconetix. However, Esperion Therapeutics is 1.79 times less risky than Onconetix. It trades about 0.18 of its potential returns per unit of risk. Onconetix is currently generating about -0.68 per unit of risk. If you would invest 213.00 in Esperion Therapeutics on August 31, 2024 and sell it today you would earn a total of 41.00 from holding Esperion Therapeutics or generate 19.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Esperion Therapeutics vs. Onconetix
Performance |
| Timeline |
| Esperion Therapeutics |
| Onconetix |
Esperion Therapeutics and Onconetix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Esperion Therapeutics and Onconetix
The main advantage of trading using opposite Esperion Therapeutics and Onconetix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Esperion Therapeutics position performs unexpectedly, Onconetix 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 Onconetix will offset losses from the drop in Onconetix's long position.| Esperion Therapeutics vs. Bausch Health Companies | Esperion Therapeutics vs. Haleon plc | Esperion Therapeutics vs. Intracellular Th |
| Onconetix vs. Molson Coors Brewing | Onconetix vs. Turning Point Brands | Onconetix vs. Scandinavian Tobacco Group | Onconetix vs. Nextplat Corp |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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