Correlation Between Mesa Air and Lipocine
Can any of the company-specific risk be diversified away by investing in both Mesa Air 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 Mesa Air and Lipocine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mesa Air Group and Lipocine, you can compare the effects of market volatilities on Mesa Air 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 Mesa Air with a short position of Lipocine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mesa Air and Lipocine.
Diversification Opportunities for Mesa Air and Lipocine
Excellent diversification
The 3 months correlation between Mesa and Lipocine is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Mesa Air Group and Lipocine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipocine and Mesa Air 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 Mesa Air Group 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 Mesa Air i.e., Mesa Air and Lipocine go up and down completely randomly.
Pair Corralation between Mesa Air and Lipocine
Given the investment horizon of 90 days Mesa Air Group is expected to generate 0.94 times more return on investment than Lipocine. However, Mesa Air Group is 1.06 times less risky than Lipocine. It trades about -0.01 of its potential returns per unit of risk. Lipocine is currently generating about -0.02 per unit of risk. If you would invest 143.00 in Mesa Air Group on September 2, 2024 and sell it today you would lose (35.00) from holding Mesa Air Group or give up 24.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mesa Air Group vs. Lipocine
Performance |
| Timeline |
| Mesa Air Group |
| Lipocine |
Mesa Air and Lipocine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mesa Air and Lipocine
The main advantage of trading using opposite Mesa Air and Lipocine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mesa Air 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.| Mesa Air vs. Allegiant Travel | Mesa Air vs. Sun Country Airlines | Mesa Air vs. Frontier Group Holdings | Mesa Air vs. Azul SA |
| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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