Correlation Between Elicio Therapeutics and Eli Lilly
Can any of the company-specific risk be diversified away by investing in both Elicio Therapeutics 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 Elicio Therapeutics and Eli Lilly into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elicio Therapeutics and Eli Lilly and, you can compare the effects of market volatilities on Elicio Therapeutics 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 Elicio Therapeutics with a short position of Eli Lilly. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elicio Therapeutics and Eli Lilly.
Diversification Opportunities for Elicio Therapeutics and Eli Lilly
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Elicio and Eli is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Elicio Therapeutics and Eli Lilly and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eli Lilly and Elicio 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 Elicio Therapeutics 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 Elicio Therapeutics i.e., Elicio Therapeutics and Eli Lilly go up and down completely randomly.
Pair Corralation between Elicio Therapeutics and Eli Lilly
Given the investment horizon of 90 days Elicio Therapeutics is expected to generate 2.69 times more return on investment than Eli Lilly. However, Elicio Therapeutics is 2.69 times more volatile than Eli Lilly and. It trades about 0.17 of its potential returns per unit of risk. Eli Lilly and is currently generating about 0.14 per unit of risk. If you would invest 529.00 in Elicio Therapeutics on November 18, 2024 and sell it today you would earn a total of 288.00 from holding Elicio Therapeutics or generate 54.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elicio Therapeutics vs. Eli Lilly and
Performance |
| Timeline |
| Elicio Therapeutics |
| Eli Lilly |
Elicio Therapeutics and Eli Lilly Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elicio Therapeutics and Eli Lilly
The main advantage of trading using opposite Elicio Therapeutics and Eli Lilly positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elicio Therapeutics 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.| Elicio Therapeutics vs. Noble plc | Elicio Therapeutics vs. Boston Omaha Corp | Elicio Therapeutics vs. Magnite | Elicio Therapeutics vs. Deluxe |
| Eli Lilly vs. Canopy Growth Corp | Eli Lilly vs. SNDL Inc | Eli Lilly vs. Cronos Group | Eli Lilly vs. Curaleaf Holdings |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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