Correlation Between Lipocine and Aditxt
Can any of the company-specific risk be diversified away by investing in both Lipocine and Aditxt 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 Lipocine and Aditxt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lipocine and Aditxt Inc, you can compare the effects of market volatilities on Lipocine and Aditxt 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 Lipocine with a short position of Aditxt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lipocine and Aditxt.
Diversification Opportunities for Lipocine and Aditxt
Poor diversification
The 3 months correlation between Lipocine and Aditxt is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Lipocine and Aditxt Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aditxt Inc and Lipocine 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 Lipocine are associated (or correlated) with Aditxt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aditxt Inc has no effect on the direction of Lipocine i.e., Lipocine and Aditxt go up and down completely randomly.
Pair Corralation between Lipocine and Aditxt
Given the investment horizon of 90 days Lipocine is expected to generate 0.54 times more return on investment than Aditxt. However, Lipocine is 1.86 times less risky than Aditxt. It trades about -0.21 of its potential returns per unit of risk. Aditxt Inc is currently generating about -0.47 per unit of risk. If you would invest 506.00 in Lipocine on November 4, 2024 and sell it today you would lose (74.00) from holding Lipocine or give up 14.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lipocine vs. Aditxt Inc
Performance |
| Timeline |
| Lipocine |
| Aditxt Inc |
Lipocine and Aditxt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lipocine and Aditxt
The main advantage of trading using opposite Lipocine and Aditxt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lipocine position performs unexpectedly, Aditxt 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 Aditxt will offset losses from the drop in Aditxt's long position.| Lipocine vs. Reviva Pharmaceuticals Holdings | Lipocine vs. ZyVersa Therapeutics | Lipocine vs. Unicycive Therapeutics | Lipocine vs. Checkpoint Therapeutics |
| Aditxt vs. Dermata Therapeutics | Aditxt vs. Unicycive Therapeutics | Aditxt vs. Revelation Biosciences | Aditxt vs. Palisade Bio |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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