Correlation Between Eli Lilly and Grupo Hotelero
Can any of the company-specific risk be diversified away by investing in both Eli Lilly and Grupo Hotelero 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 Eli Lilly and Grupo Hotelero into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eli Lilly and and Grupo Hotelero Santa, you can compare the effects of market volatilities on Eli Lilly and Grupo Hotelero 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 Eli Lilly with a short position of Grupo Hotelero. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eli Lilly and Grupo Hotelero.
Diversification Opportunities for Eli Lilly and Grupo Hotelero
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eli and Grupo is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Eli Lilly and and Grupo Hotelero Santa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Hotelero Santa and Eli Lilly 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 Eli Lilly and are associated (or correlated) with Grupo Hotelero. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Hotelero Santa has no effect on the direction of Eli Lilly i.e., Eli Lilly and Grupo Hotelero go up and down completely randomly.
Pair Corralation between Eli Lilly and Grupo Hotelero
Assuming the 90 days trading horizon Eli Lilly and is expected to under-perform the Grupo Hotelero. In addition to that, Eli Lilly is 3.3 times more volatile than Grupo Hotelero Santa. It trades about -0.23 of its total potential returns per unit of risk. Grupo Hotelero Santa is currently generating about 0.07 per unit of volatility. If you would invest 390.00 in Grupo Hotelero Santa on August 28, 2024 and sell it today you would earn a total of 5.00 from holding Grupo Hotelero Santa or generate 1.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eli Lilly and vs. Grupo Hotelero Santa
Performance |
| Timeline |
| Eli Lilly |
| Grupo Hotelero Santa |
Eli Lilly and Grupo Hotelero Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eli Lilly and Grupo Hotelero
The main advantage of trading using opposite Eli Lilly and Grupo Hotelero positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eli Lilly position performs unexpectedly, Grupo Hotelero 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 Grupo Hotelero will offset losses from the drop in Grupo Hotelero's long position.| Eli Lilly vs. GMxico Transportes SAB | Eli Lilly vs. Grupo Hotelero Santa | Eli Lilly vs. Applied Materials | Eli Lilly vs. Southwest Airlines |
| Grupo Hotelero vs. Prudential Financial | Grupo Hotelero vs. Ameriprise Financial | Grupo Hotelero vs. GMxico Transportes SAB | Grupo Hotelero vs. Grupo Sports World |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |