Correlation Between Lipocine and Nuvation Bio
Can any of the company-specific risk be diversified away by investing in both Lipocine and Nuvation Bio 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 Nuvation Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lipocine and Nuvation Bio, you can compare the effects of market volatilities on Lipocine and Nuvation Bio 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 Nuvation Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lipocine and Nuvation Bio.
Diversification Opportunities for Lipocine and Nuvation Bio
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lipocine and Nuvation is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Lipocine and Nuvation Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuvation Bio 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 Nuvation Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuvation Bio has no effect on the direction of Lipocine i.e., Lipocine and Nuvation Bio go up and down completely randomly.
Pair Corralation between Lipocine and Nuvation Bio
Given the investment horizon of 90 days Lipocine is expected to under-perform the Nuvation Bio. In addition to that, Lipocine is 1.09 times more volatile than Nuvation Bio. It trades about -0.07 of its total potential returns per unit of risk. Nuvation Bio is currently generating about 0.1 per unit of volatility. If you would invest 221.00 in Nuvation Bio on October 25, 2024 and sell it today you would earn a total of 55.00 from holding Nuvation Bio or generate 24.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lipocine vs. Nuvation Bio
Performance |
| Timeline |
| Lipocine |
| Nuvation Bio |
Lipocine and Nuvation Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lipocine and Nuvation Bio
The main advantage of trading using opposite Lipocine and Nuvation Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lipocine position performs unexpectedly, Nuvation Bio 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 Nuvation Bio will offset losses from the drop in Nuvation Bio's long position.| Lipocine vs. Terns Pharmaceuticals | Lipocine vs. X4 Pharmaceuticals | Lipocine vs. Day One Biopharmaceuticals | Lipocine vs. Hookipa Pharma |
| Nuvation Bio vs. Assembly Biosciences | Nuvation Bio vs. Instil Bio | Nuvation Bio vs. Achilles Therapeutics PLC | Nuvation Bio vs. NextCure |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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