Correlation Between Petros Pharmaceuticals and Esperion Therapeutics
Can any of the company-specific risk be diversified away by investing in both Petros Pharmaceuticals and Esperion 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 Petros Pharmaceuticals and Esperion Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Petros Pharmaceuticals and Esperion Therapeutics, you can compare the effects of market volatilities on Petros Pharmaceuticals and Esperion 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 Petros Pharmaceuticals with a short position of Esperion Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petros Pharmaceuticals and Esperion Therapeutics.
Diversification Opportunities for Petros Pharmaceuticals and Esperion Therapeutics
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Petros and Esperion is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Petros Pharmaceuticals and Esperion Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Esperion Therapeutics and Petros Pharmaceuticals 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 Petros Pharmaceuticals are associated (or correlated) with Esperion Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Esperion Therapeutics has no effect on the direction of Petros Pharmaceuticals i.e., Petros Pharmaceuticals and Esperion Therapeutics go up and down completely randomly.
Pair Corralation between Petros Pharmaceuticals and Esperion Therapeutics
Given the investment horizon of 90 days Petros Pharmaceuticals is expected to generate 2.99 times more return on investment than Esperion Therapeutics. However, Petros Pharmaceuticals is 2.99 times more volatile than Esperion Therapeutics. It trades about 0.01 of its potential returns per unit of risk. Esperion Therapeutics is currently generating about 0.0 per unit of risk. If you would invest 365.00 in Petros Pharmaceuticals on August 24, 2024 and sell it today you would lose (338.00) from holding Petros Pharmaceuticals or give up 92.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Petros Pharmaceuticals vs. Esperion Therapeutics
Performance |
| Timeline |
| Petros Pharmaceuticals |
| Esperion Therapeutics |
Petros Pharmaceuticals and Esperion Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petros Pharmaceuticals and Esperion Therapeutics
The main advantage of trading using opposite Petros Pharmaceuticals and Esperion Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petros Pharmaceuticals position performs unexpectedly, Esperion 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 Esperion Therapeutics will offset losses from the drop in Esperion Therapeutics' long position.| Petros Pharmaceuticals vs. Sunshine Biopharma | Petros Pharmaceuticals vs. Sonoma Pharmaceuticals | Petros Pharmaceuticals vs. Alpha Teknova | Petros Pharmaceuticals vs. Evoke Pharma |
| Esperion Therapeutics vs. Elanco Animal Health | Esperion Therapeutics vs. SIGA Technologies | Esperion Therapeutics vs. Catalent | Esperion Therapeutics vs. ANI Pharmaceuticals |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |