Correlation Between TAMBANG BATUBARA-B- and Eli Lilly
Can any of the company-specific risk be diversified away by investing in both TAMBANG BATUBARA-B- 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 TAMBANG BATUBARA-B- and Eli Lilly into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TAMBANG BATUBARA B and Eli Lilly and, you can compare the effects of market volatilities on TAMBANG BATUBARA-B- 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 TAMBANG BATUBARA-B- with a short position of Eli Lilly. Check out your portfolio center. Please also check ongoing floating volatility patterns of TAMBANG BATUBARA-B- and Eli Lilly.
Diversification Opportunities for TAMBANG BATUBARA-B- and Eli Lilly
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TAMBANG and Eli is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding TAMBANG BATUBARA B and Eli Lilly and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eli Lilly and TAMBANG BATUBARA-B- 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 TAMBANG BATUBARA B 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 TAMBANG BATUBARA-B- i.e., TAMBANG BATUBARA-B- and Eli Lilly go up and down completely randomly.
Pair Corralation between TAMBANG BATUBARA-B- and Eli Lilly
Assuming the 90 days trading horizon TAMBANG BATUBARA B is expected to under-perform the Eli Lilly. In addition to that, TAMBANG BATUBARA-B- is 1.18 times more volatile than Eli Lilly and. It trades about -0.02 of its total potential returns per unit of risk. Eli Lilly and is currently generating about 0.1 per unit of volatility. If you would invest 33,149 in Eli Lilly and on November 28, 2024 and sell it today you would earn a total of 52,521 from holding Eli Lilly and or generate 158.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
TAMBANG BATUBARA B vs. Eli Lilly and
Performance |
| Timeline |
| TAMBANG BATUBARA-B- |
| Eli Lilly |
TAMBANG BATUBARA-B- and Eli Lilly Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TAMBANG BATUBARA-B- and Eli Lilly
The main advantage of trading using opposite TAMBANG BATUBARA-B- and Eli Lilly positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TAMBANG BATUBARA-B- 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.| TAMBANG BATUBARA-B- vs. Major Drilling Group | TAMBANG BATUBARA-B- vs. Urban Outfitters | TAMBANG BATUBARA-B- vs. BORR DRILLING NEW | TAMBANG BATUBARA-B- vs. PRECISION DRILLING P |
| Eli Lilly vs. Johnson Johnson | Eli Lilly vs. Pfizer Inc | Eli Lilly vs. AstraZeneca PLC | Eli Lilly vs. Amgen Inc |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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