Correlation Between Lipocine and JD Sports
Can any of the company-specific risk be diversified away by investing in both Lipocine and JD Sports 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 JD Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lipocine and JD Sports Fashion, you can compare the effects of market volatilities on Lipocine and JD Sports 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 JD Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lipocine and JD Sports.
Diversification Opportunities for Lipocine and JD Sports
Very weak diversification
The 3 months correlation between Lipocine and JDDSF is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Lipocine and JD Sports Fashion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD Sports Fashion 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 JD Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JD Sports Fashion has no effect on the direction of Lipocine i.e., Lipocine and JD Sports go up and down completely randomly.
Pair Corralation between Lipocine and JD Sports
Given the investment horizon of 90 days Lipocine is expected to under-perform the JD Sports. In addition to that, Lipocine is 2.42 times more volatile than JD Sports Fashion. It trades about -0.01 of its total potential returns per unit of risk. JD Sports Fashion is currently generating about 0.03 per unit of volatility. If you would invest 139.00 in JD Sports Fashion on August 28, 2024 and sell it today you would earn a total of 7.00 from holding JD Sports Fashion or generate 5.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lipocine vs. JD Sports Fashion
Performance |
| Timeline |
| Lipocine |
| JD Sports Fashion |
Lipocine and JD Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lipocine and JD Sports
The main advantage of trading using opposite Lipocine and JD Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lipocine position performs unexpectedly, JD Sports 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 JD Sports will offset losses from the drop in JD Sports' long position.| Lipocine vs. Capricor Therapeutics | Lipocine vs. Soleno Therapeutics | Lipocine vs. Bio Path Holdings | Lipocine vs. Moleculin Biotech |
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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