Correlation Between Lilium Equity and EQRx
Can any of the company-specific risk be diversified away by investing in both Lilium Equity and EQRx 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 Lilium Equity and EQRx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lilium Equity Warrants and EQRx Inc, you can compare the effects of market volatilities on Lilium Equity and EQRx 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 Lilium Equity with a short position of EQRx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lilium Equity and EQRx.
Diversification Opportunities for Lilium Equity and EQRx
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lilium and EQRx is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Lilium Equity Warrants and EQRx Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EQRx Inc and Lilium Equity 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 Lilium Equity Warrants are associated (or correlated) with EQRx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EQRx Inc has no effect on the direction of Lilium Equity i.e., Lilium Equity and EQRx go up and down completely randomly.
Pair Corralation between Lilium Equity and EQRx
If you would invest 19.00 in EQRx Inc on August 30, 2024 and sell it today you would earn a total of 0.00 from holding EQRx Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 12.5% |
| Values | Daily Returns |
Lilium Equity Warrants vs. EQRx Inc
Performance |
| Timeline |
| Lilium Equity Warrants |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| EQRx Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lilium Equity and EQRx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lilium Equity and EQRx
The main advantage of trading using opposite Lilium Equity and EQRx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lilium Equity position performs unexpectedly, EQRx 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 EQRx will offset losses from the drop in EQRx's long position.| Lilium Equity vs. Joby Aviation | Lilium Equity vs. Lilium NV | Lilium Equity vs. AEye Inc | Lilium Equity vs. Microvast 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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