Correlation Between Comstock Holding and Lipocine
Can any of the company-specific risk be diversified away by investing in both Comstock Holding 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 Comstock Holding and Lipocine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comstock Holding Companies and Lipocine, you can compare the effects of market volatilities on Comstock Holding 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 Comstock Holding with a short position of Lipocine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comstock Holding and Lipocine.
Diversification Opportunities for Comstock Holding and Lipocine
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Comstock and Lipocine is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Comstock Holding Companies and Lipocine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipocine and Comstock Holding 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 Comstock Holding Companies 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 Comstock Holding i.e., Comstock Holding and Lipocine go up and down completely randomly.
Pair Corralation between Comstock Holding and Lipocine
Given the investment horizon of 90 days Comstock Holding Companies is expected to generate 0.83 times more return on investment than Lipocine. However, Comstock Holding Companies is 1.21 times less risky than Lipocine. It trades about -0.04 of its potential returns per unit of risk. Lipocine is currently generating about -0.04 per unit of risk. If you would invest 1,031 in Comstock Holding Companies on August 24, 2024 and sell it today you would lose (67.00) from holding Comstock Holding Companies or give up 6.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Comstock Holding Companies vs. Lipocine
Performance |
| Timeline |
| Comstock Holding Com |
| Lipocine |
Comstock Holding and Lipocine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comstock Holding and Lipocine
The main advantage of trading using opposite Comstock Holding and Lipocine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comstock Holding 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.| Comstock Holding vs. St Joe Company | Comstock Holding vs. Stratus Properties | Comstock Holding vs. HUMANA INC | Comstock Holding vs. Aquagold International |
| 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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