Correlation Between Lipocine and Surf Air
Can any of the company-specific risk be diversified away by investing in both Lipocine and Surf Air 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 Surf Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lipocine and Surf Air Mobility, you can compare the effects of market volatilities on Lipocine and Surf Air 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 Surf Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lipocine and Surf Air.
Diversification Opportunities for Lipocine and Surf Air
Significant diversification
The 3 months correlation between Lipocine and Surf is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Lipocine and Surf Air Mobility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surf Air Mobility 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 Surf Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surf Air Mobility has no effect on the direction of Lipocine i.e., Lipocine and Surf Air go up and down completely randomly.
Pair Corralation between Lipocine and Surf Air
Given the investment horizon of 90 days Lipocine is expected to generate 6.53 times less return on investment than Surf Air. But when comparing it to its historical volatility, Lipocine is 8.76 times less risky than Surf Air. It trades about 0.08 of its potential returns per unit of risk. Surf Air Mobility is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 700.00 in Surf Air Mobility on September 12, 2024 and sell it today you would lose (361.00) from holding Surf Air Mobility or give up 51.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Lipocine vs. Surf Air Mobility
Performance |
| Timeline |
| Lipocine |
| Surf Air Mobility |
Lipocine and Surf Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lipocine and Surf Air
The main advantage of trading using opposite Lipocine and Surf Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lipocine position performs unexpectedly, Surf Air 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 Surf Air will offset losses from the drop in Surf Air's long position.| Lipocine vs. Reviva Pharmaceuticals Holdings | Lipocine vs. ZyVersa Therapeutics | Lipocine vs. Unicycive Therapeutics | Lipocine vs. Checkpoint Therapeutics |
| Surf Air vs. Volaris | Surf Air vs. flyExclusive, | Surf Air vs. Alaska Air Group | Surf Air vs. Copa Holdings SA |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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