Correlation Between TENCNT and Esperion Therapeutics
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By analyzing existing cross correlation between TENCNT 3975 11 APR 29 and Esperion Therapeutics, you can compare the effects of market volatilities on TENCNT 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 TENCNT with a short position of Esperion Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of TENCNT and Esperion Therapeutics.
Diversification Opportunities for TENCNT and Esperion Therapeutics
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TENCNT and Esperion is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding TENCNT 3975 11 APR 29 and Esperion Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Esperion Therapeutics and TENCNT 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 TENCNT 3975 11 APR 29 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 TENCNT i.e., TENCNT and Esperion Therapeutics go up and down completely randomly.
Pair Corralation between TENCNT and Esperion Therapeutics
Assuming the 90 days trading horizon TENCNT 3975 11 APR 29 is expected to under-perform the Esperion Therapeutics. But the bond apears to be less risky and, when comparing its historical volatility, TENCNT 3975 11 APR 29 is 4.91 times less risky than Esperion Therapeutics. The bond trades about -0.95 of its potential returns per unit of risk. The Esperion Therapeutics is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest 200.00 in Esperion Therapeutics on September 4, 2024 and sell it today you would earn a total of 110.00 from holding Esperion Therapeutics or generate 55.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 19.05% |
| Values | Daily Returns |
TENCNT 3975 11 APR 29 vs. Esperion Therapeutics
Performance |
| Timeline |
| TENCNT 75 11 |
| Esperion Therapeutics |
TENCNT and Esperion Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TENCNT and Esperion Therapeutics
The main advantage of trading using opposite TENCNT and Esperion Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TENCNT 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.| TENCNT vs. Esperion Therapeutics | TENCNT vs. Monster Beverage Corp | TENCNT vs. Nascent Wine | TENCNT vs. Teleflex Incorporated |
| Esperion Therapeutics vs. Candel Therapeutics | Esperion Therapeutics vs. Cingulate Warrants | Esperion Therapeutics vs. Unicycive Therapeutics | Esperion Therapeutics vs. Cardio Diagnostics Holdings |
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.
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