Correlation Between Lipocine and Allient
Can any of the company-specific risk be diversified away by investing in both Lipocine and Allient 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 Allient into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lipocine and Allient, you can compare the effects of market volatilities on Lipocine and Allient 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 Allient. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lipocine and Allient.
Diversification Opportunities for Lipocine and Allient
Good diversification
The 3 months correlation between Lipocine and Allient is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Lipocine and Allient in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allient 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 Allient. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allient has no effect on the direction of Lipocine i.e., Lipocine and Allient go up and down completely randomly.
Pair Corralation between Lipocine and Allient
Given the investment horizon of 90 days Lipocine is expected to under-perform the Allient. In addition to that, Lipocine is 2.54 times more volatile than Allient. It trades about -0.01 of its total potential returns per unit of risk. Allient is currently generating about 0.44 per unit of volatility. If you would invest 2,336 in Allient on September 12, 2024 and sell it today you would earn a total of 419.00 from holding Allient or generate 17.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lipocine vs. Allient
Performance |
| Timeline |
| Lipocine |
| Allient |
Lipocine and Allient Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lipocine and Allient
The main advantage of trading using opposite Lipocine and Allient positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lipocine position performs unexpectedly, Allient 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 Allient will offset losses from the drop in Allient's long position.| 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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