Correlation Between 23Andme Holding and Lipocine
Can any of the company-specific risk be diversified away by investing in both 23Andme Holding and Lipocine 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 23Andme Holding and Lipocine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 23Andme Holding Co and Lipocine, you can compare the effects of market volatilities on 23Andme Holding and Lipocine 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 23Andme Holding with a short position of Lipocine. Check out your portfolio center. Please also check ongoing floating volatility patterns of 23Andme Holding and Lipocine.
Diversification Opportunities for 23Andme Holding and Lipocine
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 23Andme and Lipocine is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding 23Andme Holding Co and Lipocine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipocine and 23Andme Holding 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 23Andme Holding Co are associated (or correlated) with Lipocine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lipocine has no effect on the direction of 23Andme Holding i.e., 23Andme Holding and Lipocine go up and down completely randomly.
Pair Corralation between 23Andme Holding and Lipocine
Allowing for the 90-day total investment horizon 23Andme Holding Co is expected to under-perform the Lipocine. In addition to that, 23Andme Holding is 1.34 times more volatile than Lipocine. It trades about -0.2 of its total potential returns per unit of risk. Lipocine is currently generating about -0.06 per unit of volatility. If you would invest 577.00 in Lipocine on August 26, 2024 and sell it today you would lose (62.00) from holding Lipocine or give up 10.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
23Andme Holding Co vs. Lipocine
Performance |
| Timeline |
| 23Andme Holding |
| Lipocine |
23Andme Holding and Lipocine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 23Andme Holding and Lipocine
The main advantage of trading using opposite 23Andme Holding and Lipocine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 23Andme Holding position performs unexpectedly, Lipocine 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 Lipocine will offset losses from the drop in Lipocine's long position.| 23Andme Holding vs. IDEXX Laboratories | 23Andme Holding vs. Twist Bioscience Corp | 23Andme Holding vs. Guardant Health | 23Andme Holding vs. Agilent Technologies |
| 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |