Correlation Between Lipocine and Sligro Food
Can any of the company-specific risk be diversified away by investing in both Lipocine and Sligro Food 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 Sligro Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lipocine and Sligro Food Group, you can compare the effects of market volatilities on Lipocine and Sligro Food 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 Sligro Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lipocine and Sligro Food.
Diversification Opportunities for Lipocine and Sligro Food
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lipocine and Sligro is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Lipocine and Sligro Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sligro Food 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 Sligro Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sligro Food Group has no effect on the direction of Lipocine i.e., Lipocine and Sligro Food go up and down completely randomly.
Pair Corralation between Lipocine and Sligro Food
Given the investment horizon of 90 days Lipocine is expected to generate 2.16 times more return on investment than Sligro Food. However, Lipocine is 2.16 times more volatile than Sligro Food Group. It trades about -0.05 of its potential returns per unit of risk. Sligro Food Group is currently generating about -0.22 per unit of risk. If you would invest 555.00 in Lipocine on August 28, 2024 and sell it today you would lose (54.00) from holding Lipocine or give up 9.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Lipocine vs. Sligro Food Group
Performance |
| Timeline |
| Lipocine |
| Sligro Food Group |
Lipocine and Sligro Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lipocine and Sligro Food
The main advantage of trading using opposite Lipocine and Sligro Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lipocine position performs unexpectedly, Sligro Food 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 Sligro Food will offset losses from the drop in Sligro Food's long position.| Lipocine vs. Reviva Pharmaceuticals Holdings | Lipocine vs. ZyVersa Therapeutics | Lipocine vs. Unicycive Therapeutics | Lipocine vs. Checkpoint Therapeutics |
| Sligro Food vs. Timken Company | Sligro Food vs. World Houseware Limited | Sligro Food vs. Lincoln Electric Holdings | Sligro Food vs. NETGEAR |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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