Correlation Between Lipigon Pharmaceuticals and Fingerprint Cards
Can any of the company-specific risk be diversified away by investing in both Lipigon Pharmaceuticals and Fingerprint Cards at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Lipigon Pharmaceuticals and Fingerprint Cards into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lipigon Pharmaceuticals AB and Fingerprint Cards AB, you can compare the effects of market volatilities on Lipigon Pharmaceuticals and Fingerprint Cards 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 Lipigon Pharmaceuticals with a short position of Fingerprint Cards. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lipigon Pharmaceuticals and Fingerprint Cards.
Diversification Opportunities for Lipigon Pharmaceuticals and Fingerprint Cards
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lipigon and Fingerprint is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Lipigon Pharmaceuticals AB and Fingerprint Cards AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fingerprint Cards and Lipigon Pharmaceuticals 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 Lipigon Pharmaceuticals AB are associated (or correlated) with Fingerprint Cards. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fingerprint Cards has no effect on the direction of Lipigon Pharmaceuticals i.e., Lipigon Pharmaceuticals and Fingerprint Cards go up and down completely randomly.
Pair Corralation between Lipigon Pharmaceuticals and Fingerprint Cards
Assuming the 90 days trading horizon Lipigon Pharmaceuticals AB is expected to generate 0.53 times more return on investment than Fingerprint Cards. However, Lipigon Pharmaceuticals AB is 1.9 times less risky than Fingerprint Cards. It trades about -0.12 of its potential returns per unit of risk. Fingerprint Cards AB is currently generating about -0.28 per unit of risk. If you would invest 17.00 in Lipigon Pharmaceuticals AB on September 25, 2024 and sell it today you would lose (3.00) from holding Lipigon Pharmaceuticals AB or give up 17.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Lipigon Pharmaceuticals AB vs. Fingerprint Cards AB
Performance |
| Timeline |
| Lipigon Pharmaceuticals |
| Fingerprint Cards |
Lipigon Pharmaceuticals and Fingerprint Cards Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lipigon Pharmaceuticals and Fingerprint Cards
The main advantage of trading using opposite Lipigon Pharmaceuticals and Fingerprint Cards positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lipigon Pharmaceuticals position performs unexpectedly, Fingerprint Cards 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 Fingerprint Cards will offset losses from the drop in Fingerprint Cards' long position.| Lipigon Pharmaceuticals vs. BioInvent International AB | Lipigon Pharmaceuticals vs. Alligator Bioscience AB | Lipigon Pharmaceuticals vs. Moberg Pharma AB | Lipigon Pharmaceuticals vs. Oncopeptides AB |
| Fingerprint Cards vs. Integrum AB Series | Fingerprint Cards vs. Lipigon Pharmaceuticals AB | Fingerprint Cards vs. Diadrom Holding AB | Fingerprint Cards vs. Greater Than AB |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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