Correlation Between Eli Lilly and Histogen
Can any of the company-specific risk be diversified away by investing in both Eli Lilly and Histogen 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 Histogen 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 Histogen, you can compare the effects of market volatilities on Eli Lilly and Histogen 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 Histogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eli Lilly and Histogen.
Diversification Opportunities for Eli Lilly and Histogen
Very good diversification
The 3 months correlation between Eli and Histogen is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Eli Lilly and and Histogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Histogen 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 Histogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Histogen has no effect on the direction of Eli Lilly i.e., Eli Lilly and Histogen go up and down completely randomly.
Pair Corralation between Eli Lilly and Histogen
Considering the 90-day investment horizon Eli Lilly and is expected to generate 0.15 times more return on investment than Histogen. However, Eli Lilly and is 6.49 times less risky than Histogen. It trades about 0.11 of its potential returns per unit of risk. Histogen is currently generating about 0.01 per unit of risk. If you would invest 32,413 in Eli Lilly and on November 8, 2024 and sell it today you would earn a total of 51,805 from holding Eli Lilly and or generate 159.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
Eli Lilly and vs. Histogen
Performance |
| Timeline |
| Eli Lilly |
| Histogen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Eli Lilly and Histogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eli Lilly and Histogen
The main advantage of trading using opposite Eli Lilly and Histogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eli Lilly position performs unexpectedly, Histogen 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 Histogen will offset losses from the drop in Histogen's long position.| Eli Lilly vs. Agilent Technologies | Eli Lilly vs. Equillium | Eli Lilly vs. 23Andme Holding Co | Eli Lilly vs. DiaMedica Therapeutics |
| Histogen vs. Virax Biolabs Group | Histogen vs. Artelo Biosciences | Histogen vs. Curis Inc | Histogen vs. SAB Biotherapeutics |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |