Correlation Between Lipocine and Mountain Crest
Can any of the company-specific risk be diversified away by investing in both Lipocine and Mountain Crest 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 Mountain Crest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lipocine and Mountain Crest Acquisition, you can compare the effects of market volatilities on Lipocine and Mountain Crest 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 Mountain Crest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lipocine and Mountain Crest.
Diversification Opportunities for Lipocine and Mountain Crest
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lipocine and Mountain is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Lipocine and Mountain Crest Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mountain Crest Acqui 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 Mountain Crest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mountain Crest Acqui has no effect on the direction of Lipocine i.e., Lipocine and Mountain Crest go up and down completely randomly.
Pair Corralation between Lipocine and Mountain Crest
Given the investment horizon of 90 days Lipocine is expected to generate 0.91 times more return on investment than Mountain Crest. However, Lipocine is 1.1 times less risky than Mountain Crest. It trades about -0.07 of its potential returns per unit of risk. Mountain Crest Acquisition is currently generating about -0.28 per unit of risk. If you would invest 1,069 in Lipocine on September 15, 2024 and sell it today you would lose (567.00) from holding Lipocine or give up 53.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 15.08% |
| Values | Daily Returns |
Lipocine vs. Mountain Crest Acquisition
Performance |
| Timeline |
| Lipocine |
| Mountain Crest Acqui |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lipocine and Mountain Crest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lipocine and Mountain Crest
The main advantage of trading using opposite Lipocine and Mountain Crest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lipocine position performs unexpectedly, Mountain Crest 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 Mountain Crest will offset losses from the drop in Mountain Crest's long position.| Lipocine vs. Emergent Biosolutions | Lipocine vs. Bausch Health Companies | Lipocine vs. Neurocrine Biosciences | Lipocine vs. Teva Pharma Industries |
| Mountain Crest vs. Lipocine | Mountain Crest vs. Spyre Therapeutics | Mountain Crest vs. Tarsus Pharmaceuticals | Mountain Crest vs. Comstock Holding Companies |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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