Correlation Between Lipocine and Neogen
Can any of the company-specific risk be diversified away by investing in both Lipocine and Neogen 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 Neogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lipocine and Neogen, you can compare the effects of market volatilities on Lipocine and Neogen 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 Neogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lipocine and Neogen.
Diversification Opportunities for Lipocine and Neogen
Excellent diversification
The 3 months correlation between Lipocine and Neogen is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Lipocine and Neogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neogen 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 Neogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neogen has no effect on the direction of Lipocine i.e., Lipocine and Neogen go up and down completely randomly.
Pair Corralation between Lipocine and Neogen
Given the investment horizon of 90 days Lipocine is expected to under-perform the Neogen. In addition to that, Lipocine is 2.2 times more volatile than Neogen. It trades about -0.05 of its total potential returns per unit of risk. Neogen is currently generating about 0.17 per unit of volatility. If you would invest 1,405 in Neogen on August 28, 2024 and sell it today you would earn a total of 126.00 from holding Neogen or generate 8.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lipocine vs. Neogen
Performance |
| Timeline |
| Lipocine |
| Neogen |
Lipocine and Neogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lipocine and Neogen
The main advantage of trading using opposite Lipocine and Neogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lipocine position performs unexpectedly, Neogen 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 Neogen will offset losses from the drop in Neogen's long position.| Lipocine vs. Capricor Therapeutics | Lipocine vs. Soleno Therapeutics | Lipocine vs. Bio Path Holdings | Lipocine vs. Moleculin Biotech |
| Neogen vs. Heartbeam | Neogen vs. EUDA Health Holdings | Neogen vs. Nutex Health | Neogen vs. Healthcare Triangle |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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