Correlation Between Lipocine and CAVA Group,
Can any of the company-specific risk be diversified away by investing in both Lipocine and CAVA Group, 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 CAVA Group, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lipocine and CAVA Group,, you can compare the effects of market volatilities on Lipocine and CAVA Group, 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 CAVA Group,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lipocine and CAVA Group,.
Diversification Opportunities for Lipocine and CAVA Group,
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lipocine and CAVA is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Lipocine and CAVA Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAVA Group, 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 CAVA Group,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAVA Group, has no effect on the direction of Lipocine i.e., Lipocine and CAVA Group, go up and down completely randomly.
Pair Corralation between Lipocine and CAVA Group,
Given the investment horizon of 90 days Lipocine is expected to generate 1928.56 times less return on investment than CAVA Group,. But when comparing it to its historical volatility, Lipocine is 9.44 times less risky than CAVA Group,. It trades about 0.0 of its potential returns per unit of risk. CAVA Group, is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 0.00 in CAVA Group, on September 3, 2024 and sell it today you would earn a total of 14,085 from holding CAVA Group, or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 77.89% |
| Values | Daily Returns |
Lipocine vs. CAVA Group,
Performance |
| Timeline |
| Lipocine |
| CAVA Group, |
Lipocine and CAVA Group, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lipocine and CAVA Group,
The main advantage of trading using opposite Lipocine and CAVA Group, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lipocine position performs unexpectedly, CAVA Group, 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 CAVA Group, will offset losses from the drop in CAVA Group,'s long position.| Lipocine vs. DiaMedica Therapeutics | Lipocine vs. Lyra Therapeutics | Lipocine vs. Centessa Pharmaceuticals PLC |
| CAVA Group, vs. Dominos Pizza | CAVA Group, vs. United Guardian | CAVA Group, vs. Yum Brands | CAVA Group, vs. Hooker Furniture |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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