Correlation Between Eli Lilly and Artivion
Can any of the company-specific risk be diversified away by investing in both Eli Lilly and Artivion 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 Artivion 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 Artivion, you can compare the effects of market volatilities on Eli Lilly and Artivion 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 Artivion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eli Lilly and Artivion.
Diversification Opportunities for Eli Lilly and Artivion
Excellent diversification
The 3 months correlation between Eli and Artivion is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Eli Lilly and and Artivion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artivion 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 Artivion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artivion has no effect on the direction of Eli Lilly i.e., Eli Lilly and Artivion go up and down completely randomly.
Pair Corralation between Eli Lilly and Artivion
Considering the 90-day investment horizon Eli Lilly is expected to generate 1.14 times less return on investment than Artivion. But when comparing it to its historical volatility, Eli Lilly and is 1.23 times less risky than Artivion. It trades about 0.09 of its potential returns per unit of risk. Artivion is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,549 in Artivion on August 31, 2024 and sell it today you would earn a total of 1,403 from holding Artivion or generate 90.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eli Lilly and vs. Artivion
Performance |
| Timeline |
| Eli Lilly |
| Artivion |
Eli Lilly and Artivion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eli Lilly and Artivion
The main advantage of trading using opposite Eli Lilly and Artivion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eli Lilly position performs unexpectedly, Artivion 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 Artivion will offset losses from the drop in Artivion's long position.| Eli Lilly vs. Pfizer Inc | Eli Lilly vs. RLJ Lodging Trust | Eli Lilly vs. Aquagold International | Eli Lilly vs. Stepstone Group |
| Artivion vs. Abbott Laboratories | Artivion vs. Medtronic PLC | Artivion vs. Edwards Lifesciences Corp | Artivion vs. ZimVie Inc |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |