Correlation Between Cedar Realty and Lipocine
Can any of the company-specific risk be diversified away by investing in both Cedar Realty 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 Cedar Realty and Lipocine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cedar Realty Trust and Lipocine, you can compare the effects of market volatilities on Cedar Realty 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 Cedar Realty with a short position of Lipocine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cedar Realty and Lipocine.
Diversification Opportunities for Cedar Realty and Lipocine
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cedar and Lipocine is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Cedar Realty Trust and Lipocine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipocine and Cedar Realty 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 Cedar Realty Trust 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 Cedar Realty i.e., Cedar Realty and Lipocine go up and down completely randomly.
Pair Corralation between Cedar Realty and Lipocine
Assuming the 90 days trading horizon Cedar Realty Trust is expected to generate 0.35 times more return on investment than Lipocine. However, Cedar Realty Trust is 2.82 times less risky than Lipocine. It trades about 0.12 of its potential returns per unit of risk. Lipocine is currently generating about -0.06 per unit of risk. If you would invest 1,503 in Cedar Realty Trust on August 26, 2024 and sell it today you would earn a total of 78.00 from holding Cedar Realty Trust or generate 5.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cedar Realty Trust vs. Lipocine
Performance |
| Timeline |
| Cedar Realty Trust |
| Lipocine |
Cedar Realty and Lipocine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cedar Realty and Lipocine
The main advantage of trading using opposite Cedar Realty and Lipocine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cedar Realty 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.| Cedar Realty vs. Saul Centers | Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. Macerich Company | Cedar Realty vs. Simon Property Group |
| 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 CEOs Directory module to screen CEOs from public companies around the world.
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