Correlation Between Lipocine and Hf Foods
Can any of the company-specific risk be diversified away by investing in both Lipocine and Hf Foods 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 Hf Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lipocine and Hf Foods Group, you can compare the effects of market volatilities on Lipocine and Hf Foods 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 Hf Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lipocine and Hf Foods.
Diversification Opportunities for Lipocine and Hf Foods
Very weak diversification
The 3 months correlation between Lipocine and HFFG is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Lipocine and Hf Foods Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hf Foods 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 Hf Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hf Foods Group has no effect on the direction of Lipocine i.e., Lipocine and Hf Foods go up and down completely randomly.
Pair Corralation between Lipocine and Hf Foods
Given the investment horizon of 90 days Lipocine is expected to under-perform the Hf Foods. In addition to that, Lipocine is 3.06 times more volatile than Hf Foods Group. It trades about -0.05 of its total potential returns per unit of risk. Hf Foods Group is currently generating about 0.02 per unit of volatility. If you would invest 352.00 in Hf Foods Group on August 25, 2024 and sell it today you would earn a total of 2.00 from holding Hf Foods Group or generate 0.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lipocine vs. Hf Foods Group
Performance |
| Timeline |
| Lipocine |
| Hf Foods Group |
Lipocine and Hf Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lipocine and Hf Foods
The main advantage of trading using opposite Lipocine and Hf Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lipocine position performs unexpectedly, Hf Foods 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 Hf Foods will offset losses from the drop in Hf Foods' long position.| Lipocine vs. Reviva Pharmaceuticals Holdings | Lipocine vs. ZyVersa Therapeutics | Lipocine vs. Unicycive Therapeutics | Lipocine vs. Checkpoint Therapeutics |
| Hf Foods vs. Innovative Food Hldg | Hf Foods vs. Calavo Growers | Hf Foods vs. The Chefs Warehouse | Hf Foods vs. AMCON Distributing |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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