Correlation Between Intel and Lipocine
Can any of the company-specific risk be diversified away by investing in both Intel 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 Intel and Lipocine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Lipocine, you can compare the effects of market volatilities on Intel 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 Intel with a short position of Lipocine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Lipocine.
Diversification Opportunities for Intel and Lipocine
Very weak diversification
The 3 months correlation between Intel and Lipocine is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Lipocine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipocine and Intel 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 Intel 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 Intel i.e., Intel and Lipocine go up and down completely randomly.
Pair Corralation between Intel and Lipocine
Given the investment horizon of 90 days Intel is expected to generate 0.61 times more return on investment than Lipocine. However, Intel is 1.64 times less risky than Lipocine. It trades about -0.03 of its potential returns per unit of risk. Lipocine is currently generating about -0.02 per unit of risk. If you would invest 3,010 in Intel on September 1, 2024 and sell it today you would lose (605.00) from holding Intel or give up 20.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. Lipocine
Performance |
| Timeline |
| Intel |
| Lipocine |
Intel and Lipocine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Lipocine
The main advantage of trading using opposite Intel and Lipocine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel 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.| Intel vs. NXP Semiconductors NV | Intel vs. GSI Technology | Intel vs. MaxLinear | Intel vs. Texas Instruments Incorporated |
| 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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