Correlation Between Eli Lilly and Elicio Therapeutics
Can any of the company-specific risk be diversified away by investing in both Eli Lilly and Elicio Therapeutics 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 Elicio Therapeutics 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 Elicio Therapeutics, you can compare the effects of market volatilities on Eli Lilly and Elicio Therapeutics 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 Elicio Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eli Lilly and Elicio Therapeutics.
Diversification Opportunities for Eli Lilly and Elicio Therapeutics
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eli and Elicio is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Eli Lilly and and Elicio Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elicio Therapeutics 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 Elicio Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elicio Therapeutics has no effect on the direction of Eli Lilly i.e., Eli Lilly and Elicio Therapeutics go up and down completely randomly.
Pair Corralation between Eli Lilly and Elicio Therapeutics
Considering the 90-day investment horizon Eli Lilly and is expected to under-perform the Elicio Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Eli Lilly and is 1.41 times less risky than Elicio Therapeutics. The stock trades about -0.21 of its potential returns per unit of risk. The Elicio Therapeutics is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 431.00 in Elicio Therapeutics on August 30, 2024 and sell it today you would earn a total of 74.00 from holding Elicio Therapeutics or generate 17.17% 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. Elicio Therapeutics
Performance |
| Timeline |
| Eli Lilly |
| Elicio Therapeutics |
Eli Lilly and Elicio Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eli Lilly and Elicio Therapeutics
The main advantage of trading using opposite Eli Lilly and Elicio Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eli Lilly position performs unexpectedly, Elicio Therapeutics 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 Elicio Therapeutics will offset losses from the drop in Elicio Therapeutics' long position.| Eli Lilly vs. Emergent Biosolutions | Eli Lilly vs. Bausch Health Companies | Eli Lilly vs. Neurocrine Biosciences | Eli Lilly vs. Teva Pharma Industries |
| Elicio Therapeutics vs. Sea | Elicio Therapeutics vs. The Cheesecake Factory | Elicio Therapeutics vs. Titan Machinery | Elicio Therapeutics vs. Fast Retailing Co |
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.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |