Correlation Between Lipocine and Marfrig Global
Can any of the company-specific risk be diversified away by investing in both Lipocine and Marfrig Global 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 Marfrig Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lipocine and Marfrig Global Foods, you can compare the effects of market volatilities on Lipocine and Marfrig Global 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 Marfrig Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lipocine and Marfrig Global.
Diversification Opportunities for Lipocine and Marfrig Global
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Lipocine and Marfrig is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Lipocine and Marfrig Global Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marfrig Global Foods 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 Marfrig Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marfrig Global Foods has no effect on the direction of Lipocine i.e., Lipocine and Marfrig Global go up and down completely randomly.
Pair Corralation between Lipocine and Marfrig Global
Given the investment horizon of 90 days Lipocine is expected to under-perform the Marfrig Global. In addition to that, Lipocine is 1.88 times more volatile than Marfrig Global Foods. It trades about -0.13 of its total potential returns per unit of risk. Marfrig Global Foods is currently generating about 0.28 per unit of volatility. If you would invest 255.00 in Marfrig Global Foods on August 28, 2024 and sell it today you would earn a total of 53.00 from holding Marfrig Global Foods or generate 20.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lipocine vs. Marfrig Global Foods
Performance |
| Timeline |
| Lipocine |
| Marfrig Global Foods |
Lipocine and Marfrig Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lipocine and Marfrig Global
The main advantage of trading using opposite Lipocine and Marfrig Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lipocine position performs unexpectedly, Marfrig Global 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 Marfrig Global will offset losses from the drop in Marfrig Global's long position.| Lipocine vs. Reviva Pharmaceuticals Holdings | Lipocine vs. ZyVersa Therapeutics | Lipocine vs. Unicycive Therapeutics | Lipocine vs. Checkpoint Therapeutics |
| Marfrig Global vs. Artisan Consumer Goods | Marfrig Global vs. The A2 Milk | Marfrig Global vs. General Mills |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |