Correlation Between Lipocine and Sellas Life
Can any of the company-specific risk be diversified away by investing in both Lipocine and Sellas Life 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 Sellas Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lipocine and Sellas Life Sciences, you can compare the effects of market volatilities on Lipocine and Sellas Life 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 Sellas Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lipocine and Sellas Life.
Diversification Opportunities for Lipocine and Sellas Life
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lipocine and Sellas is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Lipocine and Sellas Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sellas Life Sciences 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 Sellas Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sellas Life Sciences has no effect on the direction of Lipocine i.e., Lipocine and Sellas Life go up and down completely randomly.
Pair Corralation between Lipocine and Sellas Life
Given the investment horizon of 90 days Lipocine is expected to under-perform the Sellas Life. In addition to that, Lipocine is 1.8 times more volatile than Sellas Life Sciences. It trades about -0.03 of its total potential returns per unit of risk. Sellas Life Sciences is currently generating about -0.05 per unit of volatility. If you would invest 122.00 in Sellas Life Sciences on August 27, 2024 and sell it today you would lose (5.00) from holding Sellas Life Sciences or give up 4.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lipocine vs. Sellas Life Sciences
Performance |
| Timeline |
| Lipocine |
| Sellas Life Sciences |
Lipocine and Sellas Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lipocine and Sellas Life
The main advantage of trading using opposite Lipocine and Sellas Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lipocine position performs unexpectedly, Sellas Life 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 Sellas Life will offset losses from the drop in Sellas Life's long position.| Lipocine vs. Reviva Pharmaceuticals Holdings | Lipocine vs. ZyVersa Therapeutics | Lipocine vs. Unicycive Therapeutics | Lipocine vs. Checkpoint Therapeutics |
| Sellas Life vs. Eliem Therapeutics | Sellas Life vs. HCW Biologics | Sellas Life vs. Scpharmaceuticals | Sellas Life vs. Milestone Pharmaceuticals |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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