Correlation Between Lipocine and Comstock Holding
Can any of the company-specific risk be diversified away by investing in both Lipocine and Comstock Holding 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 Comstock Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lipocine and Comstock Holding Companies, you can compare the effects of market volatilities on Lipocine and Comstock Holding 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 Comstock Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lipocine and Comstock Holding.
Diversification Opportunities for Lipocine and Comstock Holding
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lipocine and Comstock is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Lipocine and Comstock Holding Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comstock Holding Com 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 Comstock Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comstock Holding Com has no effect on the direction of Lipocine i.e., Lipocine and Comstock Holding go up and down completely randomly.
Pair Corralation between Lipocine and Comstock Holding
Given the investment horizon of 90 days Lipocine is expected to generate 1.26 times more return on investment than Comstock Holding. However, Lipocine is 1.26 times more volatile than Comstock Holding Companies. It trades about -0.03 of its potential returns per unit of risk. Comstock Holding Companies is currently generating about -0.19 per unit of risk. If you would invest 555.00 in Lipocine on August 27, 2024 and sell it today you would lose (40.00) from holding Lipocine or give up 7.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lipocine vs. Comstock Holding Companies
Performance |
| Timeline |
| Lipocine |
| Comstock Holding Com |
Lipocine and Comstock Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lipocine and Comstock Holding
The main advantage of trading using opposite Lipocine and Comstock Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lipocine position performs unexpectedly, Comstock Holding 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 Comstock Holding will offset losses from the drop in Comstock Holding's long position.| Lipocine vs. Reviva Pharmaceuticals Holdings | Lipocine vs. ZyVersa Therapeutics | Lipocine vs. Unicycive Therapeutics | Lipocine vs. Checkpoint Therapeutics |
| Comstock Holding vs. St Joe Company | Comstock Holding vs. Stratus Properties | Comstock Holding vs. Mitsui Fudosan Co | Comstock Holding vs. New World Development |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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