Correlation Between Hf Foods and Lipocine
Can any of the company-specific risk be diversified away by investing in both Hf Foods 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 Hf Foods and Lipocine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hf Foods Group and Lipocine, you can compare the effects of market volatilities on Hf Foods 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 Hf Foods with a short position of Lipocine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hf Foods and Lipocine.
Diversification Opportunities for Hf Foods and Lipocine
Poor diversification
The 3 months correlation between HFFG and Lipocine is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Hf Foods Group and Lipocine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipocine and Hf Foods 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 Hf Foods Group 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 Hf Foods i.e., Hf Foods and Lipocine go up and down completely randomly.
Pair Corralation between Hf Foods and Lipocine
Given the investment horizon of 90 days Hf Foods Group is expected to under-perform the Lipocine. But the stock apears to be less risky and, when comparing its historical volatility, Hf Foods Group is 1.6 times less risky than Lipocine. The stock trades about -0.01 of its potential returns per unit of risk. The Lipocine is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 767.00 in Lipocine on November 19, 2024 and sell it today you would lose (404.00) from holding Lipocine or give up 52.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hf Foods Group vs. Lipocine
Performance |
| Timeline |
| Hf Foods Group |
| Lipocine |
Hf Foods and Lipocine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hf Foods and Lipocine
The main advantage of trading using opposite Hf Foods and Lipocine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hf Foods 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.| Hf Foods vs. Innovative Food Hldg | Hf Foods vs. G Willi Food International | Hf Foods vs. Calavo Growers | Hf Foods vs. The Chefs Warehouse |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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