Correlation Between Genfit and Lipocine
Can any of the company-specific risk be diversified away by investing in both Genfit 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 Genfit and Lipocine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genfit and Lipocine, you can compare the effects of market volatilities on Genfit 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 Genfit with a short position of Lipocine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genfit and Lipocine.
Diversification Opportunities for Genfit and Lipocine
Poor diversification
The 3 months correlation between Genfit and Lipocine is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Genfit and Lipocine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipocine and Genfit 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 Genfit 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 Genfit i.e., Genfit and Lipocine go up and down completely randomly.
Pair Corralation between Genfit and Lipocine
Given the investment horizon of 90 days Genfit is expected to under-perform the Lipocine. But the stock apears to be less risky and, when comparing its historical volatility, Genfit is 1.55 times less risky than Lipocine. The stock trades about -0.3 of its potential returns per unit of risk. The Lipocine is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 555.00 in Lipocine on August 28, 2024 and sell it today you would lose (54.00) from holding Lipocine or give up 9.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genfit vs. Lipocine
Performance |
| Timeline |
| Genfit |
| Lipocine |
Genfit and Lipocine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genfit and Lipocine
The main advantage of trading using opposite Genfit and Lipocine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genfit 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.| Genfit vs. Eliem Therapeutics | Genfit vs. HCW Biologics | Genfit vs. Molecular Partners AG | Genfit vs. MediciNova |
| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |