Correlation Between Lipocine and AMGEN
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By analyzing existing cross correlation between Lipocine and AMGEN INC 44, you can compare the effects of market volatilities on Lipocine and AMGEN 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 AMGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lipocine and AMGEN.
Diversification Opportunities for Lipocine and AMGEN
Excellent diversification
The 3 months correlation between Lipocine and AMGEN is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Lipocine and AMGEN INC 44 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMGEN INC 44 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 AMGEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMGEN INC 44 has no effect on the direction of Lipocine i.e., Lipocine and AMGEN go up and down completely randomly.
Pair Corralation between Lipocine and AMGEN
Given the investment horizon of 90 days Lipocine is expected to generate 5.57 times more return on investment than AMGEN. However, Lipocine is 5.57 times more volatile than AMGEN INC 44. It trades about 0.03 of its potential returns per unit of risk. AMGEN INC 44 is currently generating about 0.02 per unit of risk. If you would invest 494.00 in Lipocine on August 26, 2024 and sell it today you would earn a total of 21.00 from holding Lipocine or generate 4.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.9% |
| Values | Daily Returns |
Lipocine vs. AMGEN INC 44
Performance |
| Timeline |
| Lipocine |
| AMGEN INC 44 |
Lipocine and AMGEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lipocine and AMGEN
The main advantage of trading using opposite Lipocine and AMGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lipocine position performs unexpectedly, AMGEN 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 AMGEN will offset losses from the drop in AMGEN's long position.| Lipocine vs. Capricor Therapeutics | Lipocine vs. Akari Therapeutics PLC | Lipocine vs. Soleno Therapeutics | Lipocine vs. Bio Path Holdings |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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