Correlation Between Paysafe and Lipocine
Can any of the company-specific risk be diversified away by investing in both Paysafe 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 Paysafe and Lipocine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Paysafe and Lipocine, you can compare the effects of market volatilities on Paysafe 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 Paysafe with a short position of Lipocine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Paysafe and Lipocine.
Diversification Opportunities for Paysafe and Lipocine
Pay attention - limited upside
The 3 months correlation between Paysafe and Lipocine is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Paysafe and Lipocine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipocine and Paysafe 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 Paysafe 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 Paysafe i.e., Paysafe and Lipocine go up and down completely randomly.
Pair Corralation between Paysafe and Lipocine
Given the investment horizon of 90 days Paysafe is expected to under-perform the Lipocine. In addition to that, Paysafe is 1.09 times more volatile than Lipocine. It trades about -0.1 of its total potential returns per unit of risk. Lipocine is currently generating about -0.05 per unit of volatility. If you would invest 555.00 in Lipocine on August 28, 2024 and sell it today you would lose (54.00) from holding Lipocine or give up 9.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Paysafe vs. Lipocine
Performance |
| Timeline |
| Paysafe |
| Lipocine |
Paysafe and Lipocine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Paysafe and Lipocine
The main advantage of trading using opposite Paysafe and Lipocine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Paysafe 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.The idea behind Paysafe and Lipocine pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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