Correlation Between Tilray and Evotec SE
Can any of the company-specific risk be diversified away by investing in both Tilray and Evotec SE 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 Tilray and Evotec SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tilray Inc and Evotec SE ADR, you can compare the effects of market volatilities on Tilray and Evotec SE 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 Tilray with a short position of Evotec SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tilray and Evotec SE.
Diversification Opportunities for Tilray and Evotec SE
Poor diversification
The 3 months correlation between Tilray and Evotec is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Tilray Inc and Evotec SE ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evotec SE ADR and Tilray 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 Tilray Inc are associated (or correlated) with Evotec SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evotec SE ADR has no effect on the direction of Tilray i.e., Tilray and Evotec SE go up and down completely randomly.
Pair Corralation between Tilray and Evotec SE
Given the investment horizon of 90 days Tilray Inc is expected to under-perform the Evotec SE. In addition to that, Tilray is 3.13 times more volatile than Evotec SE ADR. It trades about -0.04 of its total potential returns per unit of risk. Evotec SE ADR is currently generating about -0.07 per unit of volatility. If you would invest 349.00 in Evotec SE ADR on August 26, 2025 and sell it today you would lose (52.00) from holding Evotec SE ADR or give up 14.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tilray Inc vs. Evotec SE ADR
Performance |
| Timeline |
| Tilray Inc |
| Evotec SE ADR |
Tilray and Evotec SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tilray and Evotec SE
The main advantage of trading using opposite Tilray and Evotec SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tilray position performs unexpectedly, Evotec SE 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 Evotec SE will offset losses from the drop in Evotec SE's long position.The idea behind Tilray Inc and Evotec SE ADR 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.| Evotec SE vs. NeoGenomics | Evotec SE vs. MDxHealth SA ADR | Evotec SE vs. Aclaris Therapeutics | Evotec SE vs. Stereotaxis |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |