Correlation Between Lipocine and Collective Mining
Can any of the company-specific risk be diversified away by investing in both Lipocine and Collective Mining 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 Collective Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lipocine and Collective Mining, you can compare the effects of market volatilities on Lipocine and Collective Mining 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 Collective Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lipocine and Collective Mining.
Diversification Opportunities for Lipocine and Collective Mining
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lipocine and Collective is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Lipocine and Collective Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Collective Mining 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 Collective Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Collective Mining has no effect on the direction of Lipocine i.e., Lipocine and Collective Mining go up and down completely randomly.
Pair Corralation between Lipocine and Collective Mining
Given the investment horizon of 90 days Lipocine is expected to generate 2.79 times less return on investment than Collective Mining. In addition to that, Lipocine is 1.77 times more volatile than Collective Mining. It trades about 0.04 of its total potential returns per unit of risk. Collective Mining is currently generating about 0.19 per unit of volatility. If you would invest 346.00 in Collective Mining on September 14, 2024 and sell it today you would earn a total of 34.00 from holding Collective Mining or generate 9.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lipocine vs. Collective Mining
Performance |
| Timeline |
| Lipocine |
| Collective Mining |
Lipocine and Collective Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lipocine and Collective Mining
The main advantage of trading using opposite Lipocine and Collective Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lipocine position performs unexpectedly, Collective Mining 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 Collective Mining will offset losses from the drop in Collective Mining's long position.| Lipocine vs. Reviva Pharmaceuticals Holdings | Lipocine vs. ZyVersa Therapeutics | Lipocine vs. Unicycive Therapeutics | Lipocine vs. Checkpoint Therapeutics |
| Collective Mining vs. Abcellera Biologics | Collective Mining vs. Sellas Life Sciences | Collective Mining vs. BioNTech SE | Collective Mining vs. Lipocine |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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