Correlation Between Lipocine and FactSet Research
Can any of the company-specific risk be diversified away by investing in both Lipocine and FactSet Research 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 FactSet Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lipocine and FactSet Research Systems, you can compare the effects of market volatilities on Lipocine and FactSet Research 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 FactSet Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lipocine and FactSet Research.
Diversification Opportunities for Lipocine and FactSet Research
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lipocine and FactSet is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Lipocine and FactSet Research Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FactSet Research Systems 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 FactSet Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FactSet Research Systems has no effect on the direction of Lipocine i.e., Lipocine and FactSet Research go up and down completely randomly.
Pair Corralation between Lipocine and FactSet Research
Given the investment horizon of 90 days Lipocine is expected to under-perform the FactSet Research. In addition to that, Lipocine is 5.62 times more volatile than FactSet Research Systems. It trades about -0.12 of its total potential returns per unit of risk. FactSet Research Systems is currently generating about 0.21 per unit of volatility. If you would invest 46,083 in FactSet Research Systems on September 5, 2024 and sell it today you would earn a total of 2,469 from holding FactSet Research Systems or generate 5.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lipocine vs. FactSet Research Systems
Performance |
| Timeline |
| Lipocine |
| FactSet Research Systems |
Lipocine and FactSet Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lipocine and FactSet Research
The main advantage of trading using opposite Lipocine and FactSet Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lipocine position performs unexpectedly, FactSet Research 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 FactSet Research will offset losses from the drop in FactSet Research's long position.| Lipocine vs. Crinetics Pharmaceuticals | Lipocine vs. Enanta Pharmaceuticals | Lipocine vs. Amicus Therapeutics | Lipocine vs. Connect Biopharma Holdings |
| FactSet Research vs. Dun Bradstreet Holdings | FactSet Research vs. Moodys | FactSet Research vs. MSCI Inc | FactSet Research vs. Intercontinental Exchange |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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