Correlation Between Adicet Bio and Lipocine
Can any of the company-specific risk be diversified away by investing in both Adicet Bio and Lipocine 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 Adicet Bio and Lipocine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adicet Bio and Lipocine, you can compare the effects of market volatilities on Adicet Bio and Lipocine 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 Adicet Bio with a short position of Lipocine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adicet Bio and Lipocine.
Diversification Opportunities for Adicet Bio and Lipocine
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Adicet and Lipocine is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Adicet Bio and Lipocine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipocine and Adicet Bio 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 Adicet Bio are associated (or correlated) with Lipocine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lipocine has no effect on the direction of Adicet Bio i.e., Adicet Bio and Lipocine go up and down completely randomly.
Pair Corralation between Adicet Bio and Lipocine
Given the investment horizon of 90 days Adicet Bio is expected to generate 0.74 times more return on investment than Lipocine. However, Adicet Bio is 1.36 times less risky than Lipocine. It trades about 0.12 of its potential returns per unit of risk. Lipocine is currently generating about -0.33 per unit of risk. If you would invest 96.00 in Adicet Bio on November 9, 2024 and sell it today you would earn a total of 7.00 from holding Adicet Bio or generate 7.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adicet Bio vs. Lipocine
Performance |
| Timeline |
| Adicet Bio |
| Lipocine |
Adicet Bio and Lipocine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adicet Bio and Lipocine
The main advantage of trading using opposite Adicet Bio and Lipocine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adicet Bio position performs unexpectedly, Lipocine 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 Lipocine will offset losses from the drop in Lipocine's long position.| Adicet Bio vs. Edgewise Therapeutics | Adicet Bio vs. Cullinan Oncology LLC | Adicet Bio vs. Vor Biopharma | Adicet Bio vs. Tenaya Therapeutics |
| Lipocine vs. Reviva Pharmaceuticals Holdings | Lipocine vs. ZyVersa Therapeutics | Lipocine vs. Unicycive Therapeutics | Lipocine vs. Checkpoint 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |