Correlation Between CM Hospitalar and Eli Lilly
Can any of the company-specific risk be diversified away by investing in both CM Hospitalar 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 CM Hospitalar and Eli Lilly into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CM Hospitalar SA and Eli Lilly and, you can compare the effects of market volatilities on CM Hospitalar 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 CM Hospitalar with a short position of Eli Lilly. Check out your portfolio center. Please also check ongoing floating volatility patterns of CM Hospitalar and Eli Lilly.
Diversification Opportunities for CM Hospitalar and Eli Lilly
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between VVEO3 and Eli is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding CM Hospitalar SA and Eli Lilly and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eli Lilly and CM Hospitalar 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 CM Hospitalar SA 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 CM Hospitalar i.e., CM Hospitalar and Eli Lilly go up and down completely randomly.
Pair Corralation between CM Hospitalar and Eli Lilly
Assuming the 90 days trading horizon CM Hospitalar SA is expected to under-perform the Eli Lilly. In addition to that, CM Hospitalar is 1.77 times more volatile than Eli Lilly and. It trades about -0.11 of its total potential returns per unit of risk. Eli Lilly and is currently generating about 0.12 per unit of volatility. If you would invest 5,738 in Eli Lilly and on December 4, 2024 and sell it today you would earn a total of 12,332 from holding Eli Lilly and or generate 214.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 99.8% |
Values | Daily Returns |
CM Hospitalar SA vs. Eli Lilly and
Performance |
Timeline |
CM Hospitalar SA |
Eli Lilly |
CM Hospitalar and Eli Lilly Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CM Hospitalar and Eli Lilly
The main advantage of trading using opposite CM Hospitalar and Eli Lilly positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CM Hospitalar 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.CM Hospitalar vs. Marfrig Global Foods | CM Hospitalar vs. Broadridge Financial Solutions, | CM Hospitalar vs. DENTSPLY SIRONA | CM Hospitalar vs. CVS Health |
Eli Lilly vs. Hormel Foods | Eli Lilly vs. Iron Mountain Incorporated | Eli Lilly vs. Fresenius Medical Care | Eli Lilly vs. Tyson Foods |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |