Correlation Between NYSE Composite and Lipocine
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Lipocine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Lipocine, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Lipocine. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Lipocine.
Diversification Opportunities for NYSE Composite and Lipocine
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NYSE and Lipocine is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Lipocine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipocine and NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Lipocine go up and down completely randomly.
Pair Corralation between NYSE Composite and Lipocine
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.13 times more return on investment than Lipocine. However, NYSE Composite is 7.48 times less risky than Lipocine. It trades about 0.21 of its potential returns per unit of risk. Lipocine is currently generating about -0.17 per unit of risk. If you would invest 1,960,737 in NYSE Composite on November 18, 2024 and sell it today you would earn a total of 52,312 from holding NYSE Composite or generate 2.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Lipocine
Performance |
| Timeline |
NYSE Composite and Lipocine Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Lipocine
Pair trading matchups for Lipocine
Pair Trading with NYSE Composite and Lipocine
The main advantage of trading using opposite NYSE Composite and Lipocine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Zhihu Inc ADR | NYSE Composite vs. Allied Gaming Entertainment | NYSE Composite vs. Asure Software | NYSE Composite vs. SohuCom |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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