Correlation Between Esperion Therapeutics and Silence Therapeutics
Can any of the company-specific risk be diversified away by investing in both Esperion Therapeutics and Silence 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 Silence 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 Silence Therapeutics PLC, you can compare the effects of market volatilities on Esperion Therapeutics and Silence 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 Silence Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Esperion Therapeutics and Silence Therapeutics.
Diversification Opportunities for Esperion Therapeutics and Silence Therapeutics
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Esperion and Silence is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Esperion Therapeutics and Silence Therapeutics PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silence Therapeutics PLC 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 Silence Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silence Therapeutics PLC has no effect on the direction of Esperion Therapeutics i.e., Esperion Therapeutics and Silence Therapeutics go up and down completely randomly.
Pair Corralation between Esperion Therapeutics and Silence Therapeutics
Given the investment horizon of 90 days Esperion Therapeutics is expected to under-perform the Silence Therapeutics. In addition to that, Esperion Therapeutics is 1.15 times more volatile than Silence Therapeutics PLC. It trades about 0.0 of its total potential returns per unit of risk. Silence Therapeutics PLC is currently generating about 0.0 per unit of volatility. If you would invest 1,561 in Silence Therapeutics PLC on August 31, 2024 and sell it today you would lose (794.00) from holding Silence Therapeutics PLC or give up 50.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Esperion Therapeutics vs. Silence Therapeutics PLC
Performance |
| Timeline |
| Esperion Therapeutics |
| Silence Therapeutics PLC |
Esperion Therapeutics and Silence Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Esperion Therapeutics and Silence Therapeutics
The main advantage of trading using opposite Esperion Therapeutics and Silence Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Esperion Therapeutics position performs unexpectedly, Silence 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 Silence Therapeutics will offset losses from the drop in Silence Therapeutics' long position.| Esperion Therapeutics vs. Bausch Health Companies | Esperion Therapeutics vs. Haleon plc | Esperion Therapeutics vs. Intracellular Th |
| Silence Therapeutics vs. Cue Biopharma | Silence Therapeutics vs. Eliem Therapeutics | Silence Therapeutics vs. Inhibrx | Silence Therapeutics vs. Molecular Partners AG |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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