Correlation Between Lipocine and Reynolds
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By analyzing existing cross correlation between Lipocine and Reynolds American 725, you can compare the effects of market volatilities on Lipocine and Reynolds 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 Reynolds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lipocine and Reynolds.
Diversification Opportunities for Lipocine and Reynolds
Good diversification
The 3 months correlation between Lipocine and Reynolds is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Lipocine and Reynolds American 725 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reynolds American 725 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 Reynolds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reynolds American 725 has no effect on the direction of Lipocine i.e., Lipocine and Reynolds go up and down completely randomly.
Pair Corralation between Lipocine and Reynolds
Given the investment horizon of 90 days Lipocine is expected to generate 3.73 times more return on investment than Reynolds. However, Lipocine is 3.73 times more volatile than Reynolds American 725. It trades about 0.11 of its potential returns per unit of risk. Reynolds American 725 is currently generating about -0.05 per unit of risk. If you would invest 408.00 in Lipocine on September 12, 2024 and sell it today you would earn a total of 123.00 from holding Lipocine or generate 30.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 89.06% |
| Values | Daily Returns |
Lipocine vs. Reynolds American 725
Performance |
| Timeline |
| Lipocine |
| Reynolds American 725 |
Lipocine and Reynolds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lipocine and Reynolds
The main advantage of trading using opposite Lipocine and Reynolds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lipocine position performs unexpectedly, Reynolds 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 Reynolds will offset losses from the drop in Reynolds' long position.| Lipocine vs. Emergent Biosolutions | Lipocine vs. Bausch Health Companies | Lipocine vs. Neurocrine Biosciences | Lipocine vs. Teva Pharma Industries |
| Reynolds vs. Diamond Estates Wines | Reynolds vs. Uranium Energy Corp | Reynolds vs. Diageo PLC ADR | Reynolds vs. Agnico Eagle Mines |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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