Correlation Between Eliem Therapeutics and Elutia
Can any of the company-specific risk be diversified away by investing in both Eliem Therapeutics and Elutia 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 Eliem Therapeutics and Elutia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eliem Therapeutics and Elutia Inc, you can compare the effects of market volatilities on Eliem Therapeutics and Elutia 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 Eliem Therapeutics with a short position of Elutia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eliem Therapeutics and Elutia.
Diversification Opportunities for Eliem Therapeutics and Elutia
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Eliem and Elutia is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Eliem Therapeutics and Elutia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elutia Inc and Eliem 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 Eliem Therapeutics are associated (or correlated) with Elutia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elutia Inc has no effect on the direction of Eliem Therapeutics i.e., Eliem Therapeutics and Elutia go up and down completely randomly.
Pair Corralation between Eliem Therapeutics and Elutia
Given the investment horizon of 90 days Eliem Therapeutics is expected to generate 1.48 times less return on investment than Elutia. In addition to that, Eliem Therapeutics is 1.43 times more volatile than Elutia Inc. It trades about 0.04 of its total potential returns per unit of risk. Elutia Inc is currently generating about 0.09 per unit of volatility. If you would invest 200.00 in Elutia Inc on September 3, 2024 and sell it today you would earn a total of 234.00 from holding Elutia Inc or generate 117.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eliem Therapeutics vs. Elutia Inc
Performance |
| Timeline |
| Eliem Therapeutics |
| Elutia Inc |
Eliem Therapeutics and Elutia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eliem Therapeutics and Elutia
The main advantage of trading using opposite Eliem Therapeutics and Elutia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eliem Therapeutics position performs unexpectedly, Elutia 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 Elutia will offset losses from the drop in Elutia's long position.| Eliem Therapeutics vs. Pmv Pharmaceuticals | Eliem Therapeutics vs. MediciNova | Eliem Therapeutics vs. Pharvaris BV | Eliem Therapeutics vs. PepGen |
| Elutia vs. AbbVie Inc | Elutia vs. Eli Lilly and | Elutia vs. Bristol Myers Squibb | Elutia vs. Johnson Johnson |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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