Correlation Between Eli Lilly and Tevogen Bio
Can any of the company-specific risk be diversified away by investing in both Eli Lilly and Tevogen Bio 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 Tevogen Bio 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 Tevogen Bio Holdings, you can compare the effects of market volatilities on Eli Lilly and Tevogen Bio 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 Tevogen Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eli Lilly and Tevogen Bio.
Diversification Opportunities for Eli Lilly and Tevogen Bio
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eli and Tevogen is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Eli Lilly and and Tevogen Bio Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tevogen Bio Holdings 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 Tevogen Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tevogen Bio Holdings has no effect on the direction of Eli Lilly i.e., Eli Lilly and Tevogen Bio go up and down completely randomly.
Pair Corralation between Eli Lilly and Tevogen Bio
Considering the 90-day investment horizon Eli Lilly and is expected to generate 0.3 times more return on investment than Tevogen Bio. However, Eli Lilly and is 3.34 times less risky than Tevogen Bio. It trades about -0.08 of its potential returns per unit of risk. Tevogen Bio Holdings is currently generating about -0.39 per unit of risk. If you would invest 81,751 in Eli Lilly and on September 13, 2024 and sell it today you would lose (3,294) from holding Eli Lilly and or give up 4.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Eli Lilly and vs. Tevogen Bio Holdings
Performance |
| Timeline |
| Eli Lilly |
| Tevogen Bio Holdings |
Eli Lilly and Tevogen Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eli Lilly and Tevogen Bio
The main advantage of trading using opposite Eli Lilly and Tevogen Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eli Lilly position performs unexpectedly, Tevogen Bio 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 Tevogen Bio will offset losses from the drop in Tevogen Bio's long position.| Eli Lilly vs. Johnson Johnson | Eli Lilly vs. Bristol Myers Squibb | Eli Lilly vs. AbbVie Inc | Eli Lilly vs. Pfizer Inc |
| Tevogen Bio vs. Arrow Electronics | Tevogen Bio vs. Fortress Transp Infra | Tevogen Bio vs. Amkor Technology | Tevogen Bio vs. Valneva SE ADR |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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