Correlation Between JIAHUA STORES and Eli Lilly
Can any of the company-specific risk be diversified away by investing in both JIAHUA STORES and Eli Lilly 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 JIAHUA STORES and Eli Lilly into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JIAHUA STORES and Eli Lilly and, you can compare the effects of market volatilities on JIAHUA STORES and Eli Lilly 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 JIAHUA STORES with a short position of Eli Lilly. Check out your portfolio center. Please also check ongoing floating volatility patterns of JIAHUA STORES and Eli Lilly.
Diversification Opportunities for JIAHUA STORES and Eli Lilly
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JIAHUA and Eli is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JIAHUA STORES and Eli Lilly and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eli Lilly and JIAHUA STORES 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 JIAHUA STORES are associated (or correlated) with Eli Lilly. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eli Lilly has no effect on the direction of JIAHUA STORES i.e., JIAHUA STORES and Eli Lilly go up and down completely randomly.
Pair Corralation between JIAHUA STORES and Eli Lilly
If you would invest 1.90 in JIAHUA STORES on September 13, 2024 and sell it today you would earn a total of 0.00 from holding JIAHUA STORES or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JIAHUA STORES vs. Eli Lilly and
Performance |
| Timeline |
| JIAHUA STORES |
| Eli Lilly |
JIAHUA STORES and Eli Lilly Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JIAHUA STORES and Eli Lilly
The main advantage of trading using opposite JIAHUA STORES and Eli Lilly positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JIAHUA STORES position performs unexpectedly, Eli Lilly 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 Eli Lilly will offset losses from the drop in Eli Lilly's long position.| JIAHUA STORES vs. CEOTRONICS | JIAHUA STORES vs. SALESFORCE INC CDR | JIAHUA STORES vs. CeoTronics AG | JIAHUA STORES vs. CODERE ONLINE LUX |
| Eli Lilly vs. PICKN PAY STORES | Eli Lilly vs. JIAHUA STORES | Eli Lilly vs. National Retail Properties | Eli Lilly vs. Caseys General Stores |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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