Correlation Between Silver Spike and Elanco Animal
Can any of the company-specific risk be diversified away by investing in both Silver Spike and Elanco Animal 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 Silver Spike and Elanco Animal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silver Spike Investment and Elanco Animal Health, you can compare the effects of market volatilities on Silver Spike and Elanco Animal 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 Silver Spike with a short position of Elanco Animal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silver Spike and Elanco Animal.
Diversification Opportunities for Silver Spike and Elanco Animal
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Silver and Elanco is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Silver Spike Investment and Elanco Animal Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elanco Animal Health and Silver Spike 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 Silver Spike Investment are associated (or correlated) with Elanco Animal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elanco Animal Health has no effect on the direction of Silver Spike i.e., Silver Spike and Elanco Animal go up and down completely randomly.
Pair Corralation between Silver Spike and Elanco Animal
If you would invest 1,278 in Elanco Animal Health on August 31, 2024 and sell it today you would earn a total of 35.00 from holding Elanco Animal Health or generate 2.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Silver Spike Investment vs. Elanco Animal Health
Performance |
| Timeline |
| Silver Spike Investment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| Elanco Animal Health |
Silver Spike and Elanco Animal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silver Spike and Elanco Animal
The main advantage of trading using opposite Silver Spike and Elanco Animal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silver Spike position performs unexpectedly, Elanco Animal 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 Elanco Animal will offset losses from the drop in Elanco Animal's long position.| Silver Spike vs. Entourage Health Corp | Silver Spike vs. Avicanna | Silver Spike vs. Benchmark Botanics | Silver Spike vs. Speakeasy Cannabis Club |
| Elanco Animal vs. Bausch Health Companies | Elanco Animal vs. Haleon plc | Elanco Animal vs. Intracellular Th |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |