Correlation Between Eli Lilly and Atreca
Can any of the company-specific risk be diversified away by investing in both Eli Lilly and Atreca 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 Eli Lilly and Atreca into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eli Lilly and and Atreca Inc, you can compare the effects of market volatilities on Eli Lilly and Atreca 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 Eli Lilly with a short position of Atreca. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eli Lilly and Atreca.
Diversification Opportunities for Eli Lilly and Atreca
Very weak diversification
The 3 months correlation between Eli and Atreca is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Eli Lilly and and Atreca Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atreca Inc and Eli Lilly 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 Eli Lilly and are associated (or correlated) with Atreca. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atreca Inc has no effect on the direction of Eli Lilly i.e., Eli Lilly and Atreca go up and down completely randomly.
Pair Corralation between Eli Lilly and Atreca
Considering the 90-day investment horizon Eli Lilly and is expected to generate 0.17 times more return on investment than Atreca. However, Eli Lilly and is 5.72 times less risky than Atreca. It trades about 0.12 of its potential returns per unit of risk. Atreca Inc is currently generating about -0.02 per unit of risk. If you would invest 28,358 in Eli Lilly and on January 20, 2024 and sell it today you would earn a total of 44,273 from holding Eli Lilly and or generate 156.12% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 96.57% |
Values | Daily Returns |
Eli Lilly and vs. Atreca Inc
Performance |
Timeline |
Eli Lilly |
Atreca Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Eli Lilly and Atreca Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eli Lilly and Atreca
The main advantage of trading using opposite Eli Lilly and Atreca positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eli Lilly position performs unexpectedly, Atreca 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 Atreca will offset losses from the drop in Atreca's long position.Eli Lilly vs. Alkermes Plc | Eli Lilly vs. Ironwood Pharmaceuticals | Eli Lilly vs. Deciphera Pharmaceuticals LLC | Eli Lilly vs. Eagle Pharmaceuticals |
Atreca vs. Passage Bio | Atreca vs. Stoke Therapeutics | Atreca vs. Revolution Medicines | Atreca vs. Black Diamond Therapeutics |
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
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |