Correlation Between Clovis Oncology and Lipocine
Can any of the company-specific risk be diversified away by investing in both Clovis Oncology 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 Clovis Oncology and Lipocine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clovis Oncology and Lipocine, you can compare the effects of market volatilities on Clovis Oncology 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 Clovis Oncology with a short position of Lipocine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clovis Oncology and Lipocine.
Diversification Opportunities for Clovis Oncology and Lipocine
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Clovis and Lipocine is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Clovis Oncology and Lipocine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipocine and Clovis Oncology 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 Clovis Oncology 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 Clovis Oncology i.e., Clovis Oncology and Lipocine go up and down completely randomly.
Pair Corralation between Clovis Oncology and Lipocine
If you would invest 12.00 in Clovis Oncology on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Clovis Oncology or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Clovis Oncology vs. Lipocine
Performance |
| Timeline |
| Clovis Oncology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Lipocine |
Clovis Oncology and Lipocine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clovis Oncology and Lipocine
The main advantage of trading using opposite Clovis Oncology and Lipocine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clovis Oncology 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.| Clovis Oncology vs. Lipocine | Clovis Oncology vs. Valneva SE ADR | Clovis Oncology vs. Integrated Drilling Equipment | Clovis Oncology vs. Alvotech |
| 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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