Correlation Between Lipocine and Solidion Technology
Can any of the company-specific risk be diversified away by investing in both Lipocine and Solidion Technology 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 Solidion Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lipocine and Solidion Technology, you can compare the effects of market volatilities on Lipocine and Solidion Technology 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 Solidion Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lipocine and Solidion Technology.
Diversification Opportunities for Lipocine and Solidion Technology
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lipocine and Solidion is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Lipocine and Solidion Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solidion Technology 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 Solidion Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solidion Technology has no effect on the direction of Lipocine i.e., Lipocine and Solidion Technology go up and down completely randomly.
Pair Corralation between Lipocine and Solidion Technology
Given the investment horizon of 90 days Lipocine is expected to generate 5.79 times less return on investment than Solidion Technology. But when comparing it to its historical volatility, Lipocine is 2.67 times less risky than Solidion Technology. It trades about 0.06 of its potential returns per unit of risk. Solidion Technology is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 33.00 in Solidion Technology on September 13, 2024 and sell it today you would earn a total of 7.88 from holding Solidion Technology or generate 23.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lipocine vs. Solidion Technology
Performance |
| Timeline |
| Lipocine |
| Solidion Technology |
Lipocine and Solidion Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lipocine and Solidion Technology
The main advantage of trading using opposite Lipocine and Solidion Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lipocine position performs unexpectedly, Solidion Technology 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 Solidion Technology will offset losses from the drop in Solidion Technology's long position.| Lipocine vs. Emergent Biosolutions | Lipocine vs. Bausch Health Companies | Lipocine vs. Neurocrine Biosciences | Lipocine vs. Teva Pharma Industries |
| Solidion Technology vs. Bloom Energy Corp | Solidion Technology vs. Elong Power Holding | Solidion Technology vs. Electrovaya Common Shares | Solidion Technology vs. Enovix Corp |
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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