Correlation Between Assertio Therapeutics and Evolus

Can any of the company-specific risk be diversified away by investing in both Assertio Therapeutics and Evolus 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 Assertio Therapeutics and Evolus into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Assertio Therapeutics and Evolus Inc, you can compare the effects of market volatilities on Assertio Therapeutics and Evolus 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 Assertio Therapeutics with a short position of Evolus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assertio Therapeutics and Evolus.

Diversification Opportunities for Assertio Therapeutics and Evolus

-0.66

Correlation Coefficient

Assertio Therapeutics  Evolus

Excellent diversification

The 3 months correlation between Assertio and Evolus is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Assertio Therapeutics and Evolus Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolus Inc and Assertio 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 Assertio Therapeutics are associated (or correlated) with Evolus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolus Inc has no effect on the direction of Assertio Therapeutics i.e., Assertio Therapeutics and Evolus go up and down completely randomly.

Pair Corralation between Assertio Therapeutics and Evolus

Given the investment horizon of 90 days Assertio Therapeutics is expected to generate 0.8 times more return on investment than Evolus. However, Assertio Therapeutics is 1.25 times less risky than Evolus. It trades about 0.16 of its potential returns per unit of risk. Evolus Inc is currently generating about -0.12 per unit of risk. If you would invest  64.00  in Assertio Therapeutics on June 28, 2025 and sell it today you would earn a total of  25.00  from holding Assertio Therapeutics or generate 39.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Assertio Therapeutics  vs.  Evolus Inc

Assertio Therapeutics

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Assertio Therapeutics are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Assertio Therapeutics unveiled solid returns over the last few months and may actually be approaching a breakup point.

Evolus Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days Evolus Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's essential indicators remain comparatively stable which may send shares a bit higher in October 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Assertio Therapeutics and Evolus

The main advantage of trading using opposite Assertio Therapeutics and Evolus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Assertio Therapeutics position performs unexpectedly, Evolus 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 Evolus will offset losses from the drop in Evolus' long position.

The idea behind Assertio Therapeutics and Evolus Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.