Correlation Analysis Between Merck and Eli Lilly

This module allows you to analyze existing cross correlation between Merck Company and Eli Lilly And Company. You can compare the effects of market volatilities on Merck 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 Merck with a short position of Eli Lilly. See also your portfolio center. Please also check ongoing floating volatility patterns of Merck and Eli Lilly.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

Merck  
66

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Merck Company are ranked lower than 6 (%) of all global equities and portfolios over the last 30 days. Regardless of fairly conflicting technical and fundamental indicators, Merck may actually be approaching a critical reversion point that can send shares even higher in January 2020.
Eli Lilly And  
77

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Eli Lilly And Company are ranked lower than 7 (%) of all global equities and portfolios over the last 30 days. Inspite fairly conflicting basic indicators, Eli Lilly may actually be approaching a critical reversion point that can send shares even higher in January 2020.

Merck and Eli Lilly Volatility Contrast

 Predicted Return Density 
      Returns 

Merck Company Inc  vs.  Eli Lilly And Company

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Merck is expected to generate 1.11 times less return on investment than Eli Lilly. In addition to that, Merck is 1.01 times more volatile than Eli Lilly And Company. It trades about 0.1 of its total potential returns per unit of risk. Eli Lilly And Company is currently generating about 0.11 per unit of volatility. If you would invest  11,147  in Eli Lilly And Company on November 11, 2019 and sell it today you would earn a total of  893.00  from holding Eli Lilly And Company or generate 8.01% return on investment over 30 days.

Pair Corralation between Merck and Eli Lilly

0.74
Time Period3 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Merck and Eli Lilly

Merck Company Inc diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Merck Company Inc and Eli Lilly And Company in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Eli Lilly And and Merck 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 Merck Company 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 And has no effect on the direction of Merck i.e. Merck and Eli Lilly go up and down completely randomly.
See also your portfolio center. Please also try Cryptocurrency Correlation module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins and exchanges.


 
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