Correlation Between EMX Royalty and Tempest Therapeutics

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

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

Diversification Opportunities for EMX Royalty and Tempest Therapeutics

0.34

Correlation Coefficient

EMX Royalty  Tempest Therapeutics

Weak diversification

The 3 months correlation between EMX and Tempest is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding EMX Royalty Corp and Tempest Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tempest Therapeutics and EMX Royalty 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 EMX Royalty Corp are associated (or correlated) with Tempest Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tempest Therapeutics has no effect on the direction of EMX Royalty i.e., EMX Royalty and Tempest Therapeutics go up and down completely randomly.

Pair Corralation between EMX Royalty and Tempest Therapeutics

Considering the 90-day investment horizon EMX Royalty Corp is expected to generate 0.78 times more return on investment than Tempest Therapeutics. However, EMX Royalty Corp is 1.29 times less risky than Tempest Therapeutics. It trades about 0.14 of its potential returns per unit of risk. Tempest Therapeutics is currently generating about 0.02 per unit of risk. If you would invest  317.00  in EMX Royalty Corp on August 19, 2025 and sell it today you would earn a total of  99.00  from holding EMX Royalty Corp or generate 31.23% return on investment over 90 days.

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

EMX Royalty Corp  vs.  Tempest Therapeutics

EMX Royalty Corp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in EMX Royalty Corp are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating primary indicators, EMX Royalty showed solid returns over the last few months and may actually be approaching a breakup point.

Tempest Therapeutics

Risk-Adjusted Performance

Weakest

Compared to the overall equity markets, risk-adjusted returns on investments in Tempest Therapeutics are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Tempest Therapeutics is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with EMX Royalty and Tempest Therapeutics

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

The idea behind EMX Royalty Corp and Tempest Therapeutics 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.