Correlation Between TOTAL BANGUN and Eli Lilly
Can any of the company-specific risk be diversified away by investing in both TOTAL BANGUN and Eli Lilly 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 TOTAL BANGUN and Eli Lilly into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TOTAL BANGUN PERSAD and Eli Lilly and, you can compare the effects of market volatilities on TOTAL BANGUN and Eli Lilly 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 TOTAL BANGUN with a short position of Eli Lilly. Check out your portfolio center. Please also check ongoing floating volatility patterns of TOTAL BANGUN and Eli Lilly.
Diversification Opportunities for TOTAL BANGUN and Eli Lilly
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between TOTAL and Eli is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding TOTAL BANGUN PERSAD and Eli Lilly and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eli Lilly and TOTAL BANGUN 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 TOTAL BANGUN PERSAD are associated (or correlated) with Eli Lilly. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eli Lilly has no effect on the direction of TOTAL BANGUN i.e., TOTAL BANGUN and Eli Lilly go up and down completely randomly.
Pair Corralation between TOTAL BANGUN and Eli Lilly
Assuming the 90 days trading horizon TOTAL BANGUN PERSAD is expected to generate 1.95 times more return on investment than Eli Lilly. However, TOTAL BANGUN is 1.95 times more volatile than Eli Lilly and. It trades about -0.04 of its potential returns per unit of risk. Eli Lilly and is currently generating about -0.12 per unit of risk. If you would invest 3.70 in TOTAL BANGUN PERSAD on August 30, 2024 and sell it today you would lose (0.35) from holding TOTAL BANGUN PERSAD or give up 9.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
TOTAL BANGUN PERSAD vs. Eli Lilly and
Performance |
| Timeline |
| TOTAL BANGUN PERSAD |
| Eli Lilly |
TOTAL BANGUN and Eli Lilly Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TOTAL BANGUN and Eli Lilly
The main advantage of trading using opposite TOTAL BANGUN and Eli Lilly positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TOTAL BANGUN position performs unexpectedly, Eli Lilly 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 Eli Lilly will offset losses from the drop in Eli Lilly's long position.| TOTAL BANGUN vs. CENTURIA OFFICE REIT | TOTAL BANGUN vs. Infrastrutture Wireless Italiane | TOTAL BANGUN vs. Carsales | TOTAL BANGUN vs. Salesforce |
| Eli Lilly vs. Hanison Construction Holdings | Eli Lilly vs. Granite Construction | Eli Lilly vs. AIR PRODCHEMICALS | Eli Lilly vs. CHINA TONTINE WINES |
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 CEOs Directory module to screen CEOs from public companies around the world.
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