Correlation Between Esperion Therapeutics and Teleflex Incorporated
Can any of the company-specific risk be diversified away by investing in both Esperion Therapeutics and Teleflex Incorporated 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 Teleflex Incorporated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Esperion Therapeutics and Teleflex Incorporated, you can compare the effects of market volatilities on Esperion Therapeutics and Teleflex Incorporated 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 Teleflex Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Esperion Therapeutics and Teleflex Incorporated.
Diversification Opportunities for Esperion Therapeutics and Teleflex Incorporated
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Esperion and Teleflex is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Esperion Therapeutics and Teleflex Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teleflex Incorporated 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 Teleflex Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teleflex Incorporated has no effect on the direction of Esperion Therapeutics i.e., Esperion Therapeutics and Teleflex Incorporated go up and down completely randomly.
Pair Corralation between Esperion Therapeutics and Teleflex Incorporated
Given the investment horizon of 90 days Esperion Therapeutics is expected to generate 1.91 times more return on investment than Teleflex Incorporated. However, Esperion Therapeutics is 1.91 times more volatile than Teleflex Incorporated. It trades about 0.24 of its potential returns per unit of risk. Teleflex Incorporated is currently generating about -0.2 per unit of risk. If you would invest 164.00 in Esperion Therapeutics on August 27, 2024 and sell it today you would earn a total of 93.00 from holding Esperion Therapeutics or generate 56.71% 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. Teleflex Incorporated
Performance |
| Timeline |
| Esperion Therapeutics |
| Teleflex Incorporated |
Esperion Therapeutics and Teleflex Incorporated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Esperion Therapeutics and Teleflex Incorporated
The main advantage of trading using opposite Esperion Therapeutics and Teleflex Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Esperion Therapeutics position performs unexpectedly, Teleflex Incorporated 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 Teleflex Incorporated will offset losses from the drop in Teleflex Incorporated's long position.| Esperion Therapeutics vs. Eliem Therapeutics | Esperion Therapeutics vs. HCW Biologics | Esperion Therapeutics vs. Scpharmaceuticals | Esperion Therapeutics vs. Milestone Pharmaceuticals |
| Teleflex Incorporated vs. West Pharmaceutical Services | Teleflex Incorporated vs. Alcon AG | Teleflex Incorporated vs. ResMed Inc | Teleflex Incorporated vs. ICU Medical |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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