Correlation Between Lipocine and CUMMINS
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By analyzing existing cross correlation between Lipocine and CUMMINS INC 4875, you can compare the effects of market volatilities on Lipocine and CUMMINS 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 CUMMINS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lipocine and CUMMINS.
Diversification Opportunities for Lipocine and CUMMINS
Very good diversification
The 3 months correlation between Lipocine and CUMMINS is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Lipocine and CUMMINS INC 4875 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CUMMINS INC 4875 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 CUMMINS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CUMMINS INC 4875 has no effect on the direction of Lipocine i.e., Lipocine and CUMMINS go up and down completely randomly.
Pair Corralation between Lipocine and CUMMINS
Given the investment horizon of 90 days Lipocine is expected to generate 113.93 times less return on investment than CUMMINS. But when comparing it to its historical volatility, Lipocine is 16.18 times less risky than CUMMINS. It trades about 0.01 of its potential returns per unit of risk. CUMMINS INC 4875 is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 9,998 in CUMMINS INC 4875 on September 2, 2024 and sell it today you would earn a total of 83.00 from holding CUMMINS INC 4875 or generate 0.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 52.02% |
| Values | Daily Returns |
Lipocine vs. CUMMINS INC 4875
Performance |
| Timeline |
| Lipocine |
| CUMMINS INC 4875 |
Lipocine and CUMMINS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lipocine and CUMMINS
The main advantage of trading using opposite Lipocine and CUMMINS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lipocine position performs unexpectedly, CUMMINS 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 CUMMINS will offset losses from the drop in CUMMINS's long position.| Lipocine vs. Reviva Pharmaceuticals Holdings | Lipocine vs. ZyVersa Therapeutics | Lipocine vs. Unicycive Therapeutics | Lipocine vs. Checkpoint Therapeutics |
| CUMMINS vs. AEP TEX INC | CUMMINS vs. US BANK NATIONAL | CUMMINS vs. Bank of America | CUMMINS vs. GE Aerospace |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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