Correlation Between Si Bone and Esperion Therapeutics
Can any of the company-specific risk be diversified away by investing in both Si Bone 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 Si Bone and Esperion Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Si Bone and Esperion Therapeutics, you can compare the effects of market volatilities on Si Bone 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 Si Bone with a short position of Esperion Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Si Bone and Esperion Therapeutics.
Diversification Opportunities for Si Bone and Esperion Therapeutics
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between SIBN and Esperion is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Si Bone and Esperion Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Esperion Therapeutics and Si Bone 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 Si Bone 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 Si Bone i.e., Si Bone and Esperion Therapeutics go up and down completely randomly.
Pair Corralation between Si Bone and Esperion Therapeutics
Given the investment horizon of 90 days Si Bone is expected to generate 3.19 times less return on investment than Esperion Therapeutics. But when comparing it to its historical volatility, Si Bone is 1.65 times less risky than Esperion Therapeutics. It trades about 0.07 of its potential returns per unit of risk. Esperion Therapeutics is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 204.00 in Esperion Therapeutics on August 19, 2025 and sell it today you would earn a total of 88.00 from holding Esperion Therapeutics or generate 43.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Si Bone vs. Esperion Therapeutics
Performance |
| Timeline |
| Si Bone |
| Esperion Therapeutics |
Si Bone and Esperion Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Si Bone and Esperion Therapeutics
The main advantage of trading using opposite Si Bone and Esperion Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Si Bone 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.| Si Bone vs. Orthofix Medical | Si Bone vs. Pacific Biosciences of | Si Bone vs. Clearpoint Neuro | Si Bone vs. Butterfly Network |
| Esperion Therapeutics vs. SNDL Inc | Esperion Therapeutics vs. SIGA Technologies | Esperion Therapeutics vs. Aquestive Therapeutics | Esperion Therapeutics vs. Emergent Biosolutions |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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