Correlation Between Nukkleus and Lipocine
Can any of the company-specific risk be diversified away by investing in both Nukkleus 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 Nukkleus and Lipocine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nukkleus and Lipocine, you can compare the effects of market volatilities on Nukkleus 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 Nukkleus with a short position of Lipocine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nukkleus and Lipocine.
Diversification Opportunities for Nukkleus and Lipocine
Good diversification
The 3 months correlation between Nukkleus and Lipocine is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Nukkleus and Lipocine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipocine and Nukkleus 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 Nukkleus 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 Nukkleus i.e., Nukkleus and Lipocine go up and down completely randomly.
Pair Corralation between Nukkleus and Lipocine
Assuming the 90 days horizon Nukkleus is expected to generate 7.57 times more return on investment than Lipocine. However, Nukkleus is 7.57 times more volatile than Lipocine. It trades about 0.07 of its potential returns per unit of risk. Lipocine is currently generating about 0.14 per unit of risk. If you would invest 3.01 in Nukkleus on August 25, 2024 and sell it today you would lose (2.02) from holding Nukkleus or give up 67.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Nukkleus vs. Lipocine
Performance |
| Timeline |
| Nukkleus |
| Lipocine |
Nukkleus and Lipocine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nukkleus and Lipocine
The main advantage of trading using opposite Nukkleus and Lipocine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nukkleus 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.| Nukkleus vs. Lipocine | Nukkleus vs. VirnetX Holding Corp | Nukkleus vs. Valneva SE ADR | Nukkleus vs. Genfit |
| Lipocine vs. Capricor Therapeutics | Lipocine vs. Akari Therapeutics PLC | Lipocine vs. Soleno Therapeutics | Lipocine vs. Bio Path Holdings |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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