Correlation Between ESSA Pharma and Inogen

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

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

Diversification Opportunities for ESSA Pharma and Inogen

0.04

Correlation Coefficient

ESSA Pharma  Inogen

Significant diversification

The 3 months correlation between ESSA and Inogen is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding ESSA Pharma and Inogen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inogen Inc and ESSA Pharma 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 ESSA Pharma are associated (or correlated) with Inogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inogen Inc has no effect on the direction of ESSA Pharma i.e., ESSA Pharma and Inogen go up and down completely randomly.

Pair Corralation between ESSA Pharma and Inogen

Given the investment horizon of 90 days ESSA Pharma is expected to generate 0.52 times more return on investment than Inogen. However, ESSA Pharma is 1.91 times less risky than Inogen. It trades about 0.09 of its potential returns per unit of risk. Inogen Inc is currently generating about -0.04 per unit of risk. If you would invest  171.00  in ESSA Pharma on May 4, 2025 and sell it today you would earn a total of  17.00  from holding ESSA Pharma or generate 9.94% return on investment over 90 days.

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

ESSA Pharma  vs.  Inogen Inc

ESSA Pharma

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ESSA Pharma are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent forward indicators, ESSA Pharma may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Inogen Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Inogen Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's technical and fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with ESSA Pharma and Inogen

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

The idea behind ESSA Pharma and Inogen 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..