Correlation Between Esperion Therapeutics and Valneva SE
Can any of the company-specific risk be diversified away by investing in both Esperion Therapeutics and Valneva SE 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 Valneva SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Esperion Therapeutics and Valneva SE ADR, you can compare the effects of market volatilities on Esperion Therapeutics and Valneva SE 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 Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Esperion Therapeutics and Valneva SE.
Diversification Opportunities for Esperion Therapeutics and Valneva SE
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Esperion and Valneva is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Esperion Therapeutics and Valneva SE ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valneva SE ADR 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 Valneva SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valneva SE ADR has no effect on the direction of Esperion Therapeutics i.e., Esperion Therapeutics and Valneva SE go up and down completely randomly.
Pair Corralation between Esperion Therapeutics and Valneva SE
Given the investment horizon of 90 days Esperion Therapeutics is expected to generate 1.62 times more return on investment than Valneva SE. However, Esperion Therapeutics is 1.62 times more volatile than Valneva SE ADR. It trades about 0.01 of its potential returns per unit of risk. Valneva SE ADR is currently generating about -0.05 per unit of risk. If you would invest 537.00 in Esperion Therapeutics on September 2, 2024 and sell it today you would lose (257.00) from holding Esperion Therapeutics or give up 47.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Esperion Therapeutics vs. Valneva SE ADR
Performance |
| Timeline |
| Esperion Therapeutics |
| Valneva SE ADR |
Esperion Therapeutics and Valneva SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Esperion Therapeutics and Valneva SE
The main advantage of trading using opposite Esperion Therapeutics and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Esperion Therapeutics position performs unexpectedly, Valneva SE 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 Valneva SE will offset losses from the drop in Valneva SE's long position.| Esperion Therapeutics vs. Elanco Animal Health | Esperion Therapeutics vs. SIGA Technologies | Esperion Therapeutics vs. Catalent | Esperion Therapeutics vs. ANI Pharmaceuticals |
| Valneva SE vs. Tff Pharmaceuticals | Valneva SE vs. Eliem Therapeutics | Valneva SE vs. Inhibrx | Valneva SE vs. Enliven 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Global Correlations Find global opportunities by holding instruments from different markets |