Correlation Between Lipocine and Mesa Air
Can any of the company-specific risk be diversified away by investing in both Lipocine and Mesa Air 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 Mesa Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lipocine and Mesa Air Group, you can compare the effects of market volatilities on Lipocine and Mesa Air 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 Mesa Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lipocine and Mesa Air.
Diversification Opportunities for Lipocine and Mesa Air
Excellent diversification
The 3 months correlation between Lipocine and Mesa is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Lipocine and Mesa Air Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mesa Air 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 Mesa Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mesa Air Group has no effect on the direction of Lipocine i.e., Lipocine and Mesa Air go up and down completely randomly.
Pair Corralation between Lipocine and Mesa Air
Given the investment horizon of 90 days Lipocine is expected to under-perform the Mesa Air. In addition to that, Lipocine is 1.06 times more volatile than Mesa Air Group. It trades about -0.02 of its total potential returns per unit of risk. Mesa Air Group is currently generating about -0.01 per unit of volatility. If you would invest 143.00 in Mesa Air Group on September 2, 2024 and sell it today you would lose (35.00) from holding Mesa Air Group or give up 24.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lipocine vs. Mesa Air Group
Performance |
| Timeline |
| Lipocine |
| Mesa Air Group |
Lipocine and Mesa Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lipocine and Mesa Air
The main advantage of trading using opposite Lipocine and Mesa Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lipocine position performs unexpectedly, Mesa Air 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 Mesa Air will offset losses from the drop in Mesa Air's long position.| Lipocine vs. Reviva Pharmaceuticals Holdings | Lipocine vs. ZyVersa Therapeutics | Lipocine vs. Unicycive Therapeutics | Lipocine vs. Checkpoint Therapeutics |
| Mesa Air vs. Allegiant Travel | Mesa Air vs. Sun Country Airlines | Mesa Air vs. Frontier Group Holdings | Mesa Air vs. Azul SA |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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