Correlation Between Akanda Corp and Lipocine
Can any of the company-specific risk be diversified away by investing in both Akanda Corp 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 Akanda Corp and Lipocine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akanda Corp and Lipocine, you can compare the effects of market volatilities on Akanda Corp 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 Akanda Corp with a short position of Lipocine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akanda Corp and Lipocine.
Diversification Opportunities for Akanda Corp and Lipocine
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Akanda and Lipocine is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Akanda Corp and Lipocine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipocine and Akanda Corp 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 Akanda Corp 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 Akanda Corp i.e., Akanda Corp and Lipocine go up and down completely randomly.
Pair Corralation between Akanda Corp and Lipocine
Given the investment horizon of 90 days Akanda Corp is expected to generate 1.03 times more return on investment than Lipocine. However, Akanda Corp is 1.03 times more volatile than Lipocine. It trades about 0.05 of its potential returns per unit of risk. Lipocine is currently generating about -0.35 per unit of risk. If you would invest 165.00 in Akanda Corp on November 28, 2024 and sell it today you would earn a total of 4.00 from holding Akanda Corp or generate 2.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akanda Corp vs. Lipocine
Performance |
| Timeline |
| Akanda Corp |
| Lipocine |
Akanda Corp and Lipocine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akanda Corp and Lipocine
The main advantage of trading using opposite Akanda Corp and Lipocine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akanda Corp 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.| Akanda Corp vs. China SXT Pharmaceuticals | Akanda Corp vs. Petros Pharmaceuticals | Akanda Corp vs. GelStat Corp | Akanda Corp vs. Shuttle Pharmaceuticals |
| 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 Stocks Directory module to find actively traded stocks across global markets.
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