Correlation Between Lifecore Biomedical and Lucy Scientific
Can any of the company-specific risk be diversified away by investing in both Lifecore Biomedical and Lucy Scientific 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 Lifecore Biomedical and Lucy Scientific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lifecore Biomedical and Lucy Scientific Discovery, you can compare the effects of market volatilities on Lifecore Biomedical and Lucy Scientific 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 Lifecore Biomedical with a short position of Lucy Scientific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifecore Biomedical and Lucy Scientific.
Diversification Opportunities for Lifecore Biomedical and Lucy Scientific
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lifecore and Lucy is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Lifecore Biomedical and Lucy Scientific Discovery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lucy Scientific Discovery and Lifecore Biomedical 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 Lifecore Biomedical are associated (or correlated) with Lucy Scientific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lucy Scientific Discovery has no effect on the direction of Lifecore Biomedical i.e., Lifecore Biomedical and Lucy Scientific go up and down completely randomly.
Pair Corralation between Lifecore Biomedical and Lucy Scientific
If you would invest 562.00 in Lifecore Biomedical on August 28, 2024 and sell it today you would earn a total of 184.00 from holding Lifecore Biomedical or generate 32.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Lifecore Biomedical vs. Lucy Scientific Discovery
Performance |
| Timeline |
| Lifecore Biomedical |
| Lucy Scientific Discovery |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lifecore Biomedical and Lucy Scientific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifecore Biomedical and Lucy Scientific
The main advantage of trading using opposite Lifecore Biomedical and Lucy Scientific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifecore Biomedical position performs unexpectedly, Lucy Scientific 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 Lucy Scientific will offset losses from the drop in Lucy Scientific's long position.| Lifecore Biomedical vs. Shuttle Pharmaceuticals | Lifecore Biomedical vs. Catalent | Lifecore Biomedical vs. Tilray Inc | Lifecore Biomedical vs. Kamada |
| Lucy Scientific vs. Shuttle Pharmaceuticals | Lucy Scientific vs. Lifecore Biomedical | Lucy Scientific vs. Journey Medical Corp | Lucy Scientific vs. Akanda Corp |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| CEOs Directory Screen CEOs from public companies around the world | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |