Correlation Between Hub Cyber and Lipocine
Can any of the company-specific risk be diversified away by investing in both Hub Cyber 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 Hub Cyber and Lipocine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hub Cyber Security and Lipocine, you can compare the effects of market volatilities on Hub Cyber 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 Hub Cyber with a short position of Lipocine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hub Cyber and Lipocine.
Diversification Opportunities for Hub Cyber and Lipocine
Good diversification
The 3 months correlation between Hub and Lipocine is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Hub Cyber Security and Lipocine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipocine and Hub Cyber 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 Hub Cyber Security 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 Hub Cyber i.e., Hub Cyber and Lipocine go up and down completely randomly.
Pair Corralation between Hub Cyber and Lipocine
Assuming the 90 days horizon Hub Cyber Security is expected to generate 8.57 times more return on investment than Lipocine. However, Hub Cyber is 8.57 times more volatile than Lipocine. It trades about 0.32 of its potential returns per unit of risk. Lipocine is currently generating about -0.05 per unit of risk. If you would invest 0.49 in Hub Cyber Security on August 25, 2024 and sell it today you would earn a total of 1.51 from holding Hub Cyber Security or generate 308.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Hub Cyber Security vs. Lipocine
Performance |
| Timeline |
| Hub Cyber Security |
| Lipocine |
Hub Cyber and Lipocine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hub Cyber and Lipocine
The main advantage of trading using opposite Hub Cyber and Lipocine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hub Cyber 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.| Hub Cyber vs. Minerals Technologies | Hub Cyber vs. Lipocine | Hub Cyber vs. BBB Foods | Hub Cyber vs. Village Super Market |
| 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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