Correlation Between Esperion Therapeutics and SOUTHERN
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By analyzing existing cross correlation between Esperion Therapeutics and SOUTHERN CALIF EDISON, you can compare the effects of market volatilities on Esperion Therapeutics and SOUTHERN 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 SOUTHERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Esperion Therapeutics and SOUTHERN.
Diversification Opportunities for Esperion Therapeutics and SOUTHERN
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Esperion and SOUTHERN is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Esperion Therapeutics and SOUTHERN CALIF EDISON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOUTHERN CALIF EDISON 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 SOUTHERN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOUTHERN CALIF EDISON has no effect on the direction of Esperion Therapeutics i.e., Esperion Therapeutics and SOUTHERN go up and down completely randomly.
Pair Corralation between Esperion Therapeutics and SOUTHERN
Given the investment horizon of 90 days Esperion Therapeutics is expected to generate 6.05 times more return on investment than SOUTHERN. However, Esperion Therapeutics is 6.05 times more volatile than SOUTHERN CALIF EDISON. It trades about 0.43 of its potential returns per unit of risk. SOUTHERN CALIF EDISON is currently generating about -0.06 per unit of risk. If you would invest 200.00 in Esperion Therapeutics on September 5, 2024 and sell it today you would earn a total of 125.00 from holding Esperion Therapeutics or generate 62.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 86.36% |
| Values | Daily Returns |
Esperion Therapeutics vs. SOUTHERN CALIF EDISON
Performance |
| Timeline |
| Esperion Therapeutics |
| SOUTHERN CALIF EDISON |
Esperion Therapeutics and SOUTHERN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Esperion Therapeutics and SOUTHERN
The main advantage of trading using opposite Esperion Therapeutics and SOUTHERN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Esperion Therapeutics position performs unexpectedly, SOUTHERN 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 SOUTHERN will offset losses from the drop in SOUTHERN's long position.| Esperion Therapeutics vs. Candel Therapeutics | Esperion Therapeutics vs. Cingulate Warrants | Esperion Therapeutics vs. Unicycive Therapeutics | Esperion Therapeutics vs. Cardio Diagnostics Holdings |
| SOUTHERN vs. Aquestive Therapeutics | SOUTHERN vs. The Joint Corp | SOUTHERN vs. Esperion Therapeutics | SOUTHERN vs. SFL Corporation |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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