Correlation Between Lipocine and Mechel OAO
Can any of the company-specific risk be diversified away by investing in both Lipocine and Mechel OAO 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 Mechel OAO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lipocine and Mechel OAO, you can compare the effects of market volatilities on Lipocine and Mechel OAO 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 Mechel OAO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lipocine and Mechel OAO.
Diversification Opportunities for Lipocine and Mechel OAO
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lipocine and Mechel is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Lipocine and Mechel OAO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mechel OAO 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 Mechel OAO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mechel OAO has no effect on the direction of Lipocine i.e., Lipocine and Mechel OAO go up and down completely randomly.
Pair Corralation between Lipocine and Mechel OAO
If you would invest (100.00) in Mechel OAO on September 15, 2024 and sell it today you would earn a total of 100.00 from holding Mechel OAO or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Lipocine vs. Mechel OAO
Performance |
| Timeline |
| Lipocine |
| Mechel OAO |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lipocine and Mechel OAO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lipocine and Mechel OAO
The main advantage of trading using opposite Lipocine and Mechel OAO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lipocine position performs unexpectedly, Mechel OAO 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 Mechel OAO will offset losses from the drop in Mechel OAO's long position.| Lipocine vs. Emergent Biosolutions | Lipocine vs. Bausch Health Companies | Lipocine vs. Neurocrine Biosciences | Lipocine vs. Teva Pharma Industries |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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