Correlation Between Cimpress and Lipocine
Can any of the company-specific risk be diversified away by investing in both Cimpress 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 Cimpress and Lipocine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cimpress NV and Lipocine, you can compare the effects of market volatilities on Cimpress 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 Cimpress with a short position of Lipocine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cimpress and Lipocine.
Diversification Opportunities for Cimpress and Lipocine
Pay attention - limited upside
The 3 months correlation between Cimpress and Lipocine is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Cimpress NV and Lipocine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipocine and Cimpress 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 Cimpress NV 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 Cimpress i.e., Cimpress and Lipocine go up and down completely randomly.
Pair Corralation between Cimpress and Lipocine
Given the investment horizon of 90 days Cimpress NV is expected to generate 0.63 times more return on investment than Lipocine. However, Cimpress NV is 1.58 times less risky than Lipocine. It trades about 0.08 of its potential returns per unit of risk. Lipocine is currently generating about 0.01 per unit of risk. If you would invest 2,784 in Cimpress NV on September 2, 2024 and sell it today you would earn a total of 5,246 from holding Cimpress NV or generate 188.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cimpress NV vs. Lipocine
Performance |
| Timeline |
| Cimpress NV |
| Lipocine |
Cimpress and Lipocine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cimpress and Lipocine
The main advantage of trading using opposite Cimpress and Lipocine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cimpress 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.| Cimpress vs. Innovid Corp | Cimpress vs. Deluxe | Cimpress vs. Omnicom Group | Cimpress vs. Emerald Expositions Events |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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