Correlation Between Lipocine and 693304AS6
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By analyzing existing cross correlation between Lipocine and PECO ENERGY 415, you can compare the effects of market volatilities on Lipocine and 693304AS6 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 693304AS6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lipocine and 693304AS6.
Diversification Opportunities for Lipocine and 693304AS6
Poor diversification
The 3 months correlation between Lipocine and 693304AS6 is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Lipocine and PECO ENERGY 415 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PECO ENERGY 415 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 693304AS6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PECO ENERGY 415 has no effect on the direction of Lipocine i.e., Lipocine and 693304AS6 go up and down completely randomly.
Pair Corralation between Lipocine and 693304AS6
Given the investment horizon of 90 days Lipocine is expected to under-perform the 693304AS6. In addition to that, Lipocine is 3.37 times more volatile than PECO ENERGY 415. It trades about -0.2 of its total potential returns per unit of risk. PECO ENERGY 415 is currently generating about -0.28 per unit of volatility. If you would invest 8,408 in PECO ENERGY 415 on September 2, 2024 and sell it today you would lose (370.00) from holding PECO ENERGY 415 or give up 4.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 42.86% |
| Values | Daily Returns |
Lipocine vs. PECO ENERGY 415
Performance |
| Timeline |
| Lipocine |
| PECO ENERGY 415 |
Lipocine and 693304AS6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lipocine and 693304AS6
The main advantage of trading using opposite Lipocine and 693304AS6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lipocine position performs unexpectedly, 693304AS6 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 693304AS6 will offset losses from the drop in 693304AS6'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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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