Correlation Between Esperion Therapeutics and Regeneron Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Esperion Therapeutics and Regeneron Pharmaceuticals 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 Regeneron Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Esperion Therapeutics and Regeneron Pharmaceuticals, you can compare the effects of market volatilities on Esperion Therapeutics and Regeneron Pharmaceuticals 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 Regeneron Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Esperion Therapeutics and Regeneron Pharmaceuticals.
Diversification Opportunities for Esperion Therapeutics and Regeneron Pharmaceuticals
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Esperion and Regeneron is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Esperion Therapeutics and Regeneron Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regeneron Pharmaceuticals 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 Regeneron Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regeneron Pharmaceuticals has no effect on the direction of Esperion Therapeutics i.e., Esperion Therapeutics and Regeneron Pharmaceuticals go up and down completely randomly.
Pair Corralation between Esperion Therapeutics and Regeneron Pharmaceuticals
Given the investment horizon of 90 days Esperion Therapeutics is expected to generate 2.76 times more return on investment than Regeneron Pharmaceuticals. However, Esperion Therapeutics is 2.76 times more volatile than Regeneron Pharmaceuticals. It trades about 0.16 of its potential returns per unit of risk. Regeneron Pharmaceuticals is currently generating about -0.39 per unit of risk. If you would invest 183.00 in Esperion Therapeutics on September 2, 2024 and sell it today you would earn a total of 97.00 from holding Esperion Therapeutics or generate 53.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Esperion Therapeutics vs. Regeneron Pharmaceuticals
Performance |
| Timeline |
| Esperion Therapeutics |
| Regeneron Pharmaceuticals |
Esperion Therapeutics and Regeneron Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Esperion Therapeutics and Regeneron Pharmaceuticals
The main advantage of trading using opposite Esperion Therapeutics and Regeneron Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Esperion Therapeutics position performs unexpectedly, Regeneron Pharmaceuticals 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 Regeneron Pharmaceuticals will offset losses from the drop in Regeneron Pharmaceuticals' long position.| Esperion Therapeutics vs. Elanco Animal Health | Esperion Therapeutics vs. SIGA Technologies | Esperion Therapeutics vs. Catalent | Esperion Therapeutics vs. ANI Pharmaceuticals |
| Regeneron Pharmaceuticals vs. Crispr Therapeutics AG | Regeneron Pharmaceuticals vs. Novo Nordisk AS | Regeneron Pharmaceuticals vs. Sarepta Therapeutics | Regeneron Pharmaceuticals vs. Intellia Therapeutics |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |