Correlation Between Eli Lilly and GT Biopharma
Can any of the company-specific risk be diversified away by investing in both Eli Lilly and GT Biopharma 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 GT Biopharma 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 GT Biopharma, you can compare the effects of market volatilities on Eli Lilly and GT Biopharma 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 GT Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eli Lilly and GT Biopharma.
Diversification Opportunities for Eli Lilly and GT Biopharma
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eli and GTBP is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Eli Lilly and and GT Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GT Biopharma 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 GT Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GT Biopharma has no effect on the direction of Eli Lilly i.e., Eli Lilly and GT Biopharma go up and down completely randomly.
Pair Corralation between Eli Lilly and GT Biopharma
Considering the 90-day investment horizon Eli Lilly and is expected to generate 0.21 times more return on investment than GT Biopharma. However, Eli Lilly and is 4.77 times less risky than GT Biopharma. It trades about 0.09 of its potential returns per unit of risk. GT Biopharma is currently generating about 0.0 per unit of risk. If you would invest 45,898 in Eli Lilly and on September 12, 2024 and sell it today you would earn a total of 34,060 from holding Eli Lilly and or generate 74.21% 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. GT Biopharma
Performance |
| Timeline |
| Eli Lilly |
| GT Biopharma |
Eli Lilly and GT Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eli Lilly and GT Biopharma
The main advantage of trading using opposite Eli Lilly and GT Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eli Lilly position performs unexpectedly, GT Biopharma 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 GT Biopharma will offset losses from the drop in GT Biopharma's long position.| Eli Lilly vs. Johnson Johnson | Eli Lilly vs. Bristol Myers Squibb | Eli Lilly vs. AbbVie Inc | Eli Lilly vs. Pfizer Inc |
| GT Biopharma vs. Allarity Therapeutics | GT Biopharma vs. Neurobo Pharmaceuticals | GT Biopharma vs. Virax Biolabs Group | GT Biopharma vs. Quoin Pharmaceuticals Ltd |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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