Correlation Between Esperion Therapeutics and ProQR Therapeutics
Can any of the company-specific risk be diversified away by investing in both Esperion Therapeutics and ProQR Therapeutics 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 ProQR Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Esperion Therapeutics and ProQR Therapeutics BV, you can compare the effects of market volatilities on Esperion Therapeutics and ProQR Therapeutics 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 ProQR Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Esperion Therapeutics and ProQR Therapeutics.
Diversification Opportunities for Esperion Therapeutics and ProQR Therapeutics
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Esperion and ProQR is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Esperion Therapeutics and ProQR Therapeutics BV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProQR Therapeutics 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 ProQR Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProQR Therapeutics has no effect on the direction of Esperion Therapeutics i.e., Esperion Therapeutics and ProQR Therapeutics go up and down completely randomly.
Pair Corralation between Esperion Therapeutics and ProQR Therapeutics
Given the investment horizon of 90 days Esperion Therapeutics is expected to generate 2.34 times less return on investment than ProQR Therapeutics. But when comparing it to its historical volatility, Esperion Therapeutics is 3.32 times less risky than ProQR Therapeutics. It trades about 0.16 of its potential returns per unit of risk. ProQR Therapeutics BV is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 192.00 in ProQR Therapeutics BV on September 2, 2024 and sell it today you would earn a total of 192.00 from holding ProQR Therapeutics BV or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Esperion Therapeutics vs. ProQR Therapeutics BV
Performance |
| Timeline |
| Esperion Therapeutics |
| ProQR Therapeutics |
Esperion Therapeutics and ProQR Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Esperion Therapeutics and ProQR Therapeutics
The main advantage of trading using opposite Esperion Therapeutics and ProQR Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Esperion Therapeutics position performs unexpectedly, ProQR Therapeutics 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 ProQR Therapeutics will offset losses from the drop in ProQR Therapeutics' long position.| Esperion Therapeutics vs. Elanco Animal Health | Esperion Therapeutics vs. SIGA Technologies | Esperion Therapeutics vs. Catalent | Esperion Therapeutics vs. ANI Pharmaceuticals |
| ProQR Therapeutics vs. Annexon | ProQR Therapeutics vs. Arrowhead Pharmaceuticals | ProQR Therapeutics vs. Day One Biopharmaceuticals | ProQR Therapeutics vs. Terns 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |