Correlation Between Lipocine and Smurfit
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By analyzing existing cross correlation between Lipocine and Smurfit Kappa Group, you can compare the effects of market volatilities on Lipocine and Smurfit 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 Smurfit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lipocine and Smurfit.
Diversification Opportunities for Lipocine and Smurfit
Poor diversification
The 3 months correlation between Lipocine and Smurfit is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Lipocine and Smurfit Kappa Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smurfit Kappa Group 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 Smurfit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smurfit Kappa Group has no effect on the direction of Lipocine i.e., Lipocine and Smurfit go up and down completely randomly.
Pair Corralation between Lipocine and Smurfit
Given the investment horizon of 90 days Lipocine is expected to generate 30.47 times more return on investment than Smurfit. However, Lipocine is 30.47 times more volatile than Smurfit Kappa Group. It trades about 0.04 of its potential returns per unit of risk. Smurfit Kappa Group is currently generating about -0.04 per unit of risk. If you would invest 511.00 in Lipocine on September 13, 2024 and sell it today you would earn a total of 15.00 from holding Lipocine or generate 2.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 53.49% |
| Values | Daily Returns |
Lipocine vs. Smurfit Kappa Group
Performance |
| Timeline |
| Lipocine |
| Smurfit Kappa Group |
Lipocine and Smurfit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lipocine and Smurfit
The main advantage of trading using opposite Lipocine and Smurfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lipocine position performs unexpectedly, Smurfit 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 Smurfit will offset losses from the drop in Smurfit's long position.| Lipocine vs. Emergent Biosolutions | Lipocine vs. Bausch Health Companies | Lipocine vs. Neurocrine Biosciences | Lipocine vs. Teva Pharma Industries |
| Smurfit vs. Aris Water Solutions | Smurfit vs. Vistra Energy Corp | Smurfit vs. NRG Energy | Smurfit vs. CenterPoint Energy |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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