Correlation Between Brightsphere Investment and LILLY
Specify exactly 2 symbols:
By analyzing existing cross correlation between Brightsphere Investment Group and LILLY ELI 275, you can compare the effects of market volatilities on Brightsphere Investment and 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 Brightsphere Investment with a short position of LILLY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brightsphere Investment and LILLY.
Diversification Opportunities for Brightsphere Investment and LILLY
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Brightsphere and LILLY is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Brightsphere Investment Group and LILLY ELI 275 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LILLY ELI 275 and Brightsphere Investment 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 Brightsphere Investment Group are associated (or correlated) with LILLY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LILLY ELI 275 has no effect on the direction of Brightsphere Investment i.e., Brightsphere Investment and LILLY go up and down completely randomly.
Pair Corralation between Brightsphere Investment and LILLY
Given the investment horizon of 90 days Brightsphere Investment Group is expected to generate 5.72 times more return on investment than LILLY. However, Brightsphere Investment is 5.72 times more volatile than LILLY ELI 275. It trades about 0.04 of its potential returns per unit of risk. LILLY ELI 275 is currently generating about 0.0 per unit of risk. If you would invest 2,010 in Brightsphere Investment Group on September 26, 2024 and sell it today you would earn a total of 663.00 from holding Brightsphere Investment Group or generate 32.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 86.49% |
Values | Daily Returns |
Brightsphere Investment Group vs. LILLY ELI 275
Performance |
Timeline |
Brightsphere Investment |
LILLY ELI 275 |
Brightsphere Investment and LILLY Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Brightsphere Investment and LILLY
The main advantage of trading using opposite Brightsphere Investment and LILLY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brightsphere Investment position performs unexpectedly, 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 LILLY will offset losses from the drop in LILLY's long position.The idea behind Brightsphere Investment Group and LILLY ELI 275 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
LILLY vs. AEP TEX INC | LILLY vs. US BANK NATIONAL | LILLY vs. Brightsphere Investment Group | LILLY vs. Neurocrine Biosciences |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume |