Correlation Between Lipocine and NSTAR
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By analyzing existing cross correlation between Lipocine and NSTAR ELEC 32, you can compare the effects of market volatilities on Lipocine and NSTAR 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 NSTAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lipocine and NSTAR.
Diversification Opportunities for Lipocine and NSTAR
Good diversification
The 3 months correlation between Lipocine and NSTAR is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Lipocine and NSTAR ELEC 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NSTAR ELEC 32 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 NSTAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NSTAR ELEC 32 has no effect on the direction of Lipocine i.e., Lipocine and NSTAR go up and down completely randomly.
Pair Corralation between Lipocine and NSTAR
Given the investment horizon of 90 days Lipocine is expected to generate 9.49 times more return on investment than NSTAR. However, Lipocine is 9.49 times more volatile than NSTAR ELEC 32. It trades about 0.02 of its potential returns per unit of risk. NSTAR ELEC 32 is currently generating about 0.0 per unit of risk. If you would invest 680.00 in Lipocine on September 14, 2024 and sell it today you would lose (152.00) from holding Lipocine or give up 22.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.67% |
| Values | Daily Returns |
Lipocine vs. NSTAR ELEC 32
Performance |
| Timeline |
| Lipocine |
| NSTAR ELEC 32 |
Lipocine and NSTAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lipocine and NSTAR
The main advantage of trading using opposite Lipocine and NSTAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lipocine position performs unexpectedly, NSTAR 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 NSTAR will offset losses from the drop in NSTAR's long position.| Lipocine vs. Reviva Pharmaceuticals Holdings | Lipocine vs. ZyVersa Therapeutics | Lipocine vs. Unicycive Therapeutics | Lipocine vs. Checkpoint Therapeutics |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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