Correlation Between FactSet Research and Lipocine
Can any of the company-specific risk be diversified away by investing in both FactSet Research 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 FactSet Research and Lipocine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FactSet Research Systems and Lipocine, you can compare the effects of market volatilities on FactSet Research 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 FactSet Research with a short position of Lipocine. Check out your portfolio center. Please also check ongoing floating volatility patterns of FactSet Research and Lipocine.
Diversification Opportunities for FactSet Research and Lipocine
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FactSet and Lipocine is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding FactSet Research Systems and Lipocine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipocine and FactSet Research 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 FactSet Research Systems 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 FactSet Research i.e., FactSet Research and Lipocine go up and down completely randomly.
Pair Corralation between FactSet Research and Lipocine
Considering the 90-day investment horizon FactSet Research Systems is expected to generate 0.18 times more return on investment than Lipocine. However, FactSet Research Systems is 5.62 times less risky than Lipocine. It trades about 0.21 of its potential returns per unit of risk. Lipocine is currently generating about -0.12 per unit of risk. If you would invest 46,083 in FactSet Research Systems on September 5, 2024 and sell it today you would earn a total of 2,469 from holding FactSet Research Systems or generate 5.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FactSet Research Systems vs. Lipocine
Performance |
| Timeline |
| FactSet Research Systems |
| Lipocine |
FactSet Research and Lipocine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FactSet Research and Lipocine
The main advantage of trading using opposite FactSet Research and Lipocine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FactSet Research 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.| FactSet Research vs. Dun Bradstreet Holdings | FactSet Research vs. Moodys | FactSet Research vs. MSCI Inc | FactSet Research vs. Intercontinental Exchange |
| Lipocine vs. Crinetics Pharmaceuticals | Lipocine vs. Enanta Pharmaceuticals | Lipocine vs. Amicus Therapeutics | Lipocine vs. Connect Biopharma Holdings |
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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