Correlation Between Eli Lilly and Pulmatrix
Can any of the company-specific risk be diversified away by investing in both Eli Lilly and Pulmatrix 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 Pulmatrix 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 Pulmatrix, you can compare the effects of market volatilities on Eli Lilly and Pulmatrix 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 Pulmatrix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eli Lilly and Pulmatrix.
Diversification Opportunities for Eli Lilly and Pulmatrix
Pay attention - limited upside
The 3 months correlation between Eli and Pulmatrix is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Eli Lilly and and Pulmatrix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pulmatrix 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 Pulmatrix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pulmatrix has no effect on the direction of Eli Lilly i.e., Eli Lilly and Pulmatrix go up and down completely randomly.
Pair Corralation between Eli Lilly and Pulmatrix
Considering the 90-day investment horizon Eli Lilly and is expected to under-perform the Pulmatrix. But the stock apears to be less risky and, when comparing its historical volatility, Eli Lilly and is 6.95 times less risky than Pulmatrix. The stock trades about -0.19 of its potential returns per unit of risk. The Pulmatrix is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 209.00 in Pulmatrix on August 29, 2024 and sell it today you would earn a total of 420.00 from holding Pulmatrix or generate 200.96% 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. Pulmatrix
Performance |
| Timeline |
| Eli Lilly |
| Pulmatrix |
Eli Lilly and Pulmatrix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eli Lilly and Pulmatrix
The main advantage of trading using opposite Eli Lilly and Pulmatrix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eli Lilly position performs unexpectedly, Pulmatrix 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 Pulmatrix will offset losses from the drop in Pulmatrix's long position.| Eli Lilly vs. Johnson Johnson | Eli Lilly vs. Bristol Myers Squibb | Eli Lilly vs. AbbVie Inc | Eli Lilly vs. Pfizer Inc |
| Pulmatrix vs. Capricor Therapeutics | Pulmatrix vs. Soleno Therapeutics | Pulmatrix vs. Bio Path Holdings | Pulmatrix vs. Moleculin Biotech |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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