Correlation Between Socket Mobile and Lipocine
Can any of the company-specific risk be diversified away by investing in both Socket Mobile 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 Socket Mobile and Lipocine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Socket Mobile and Lipocine, you can compare the effects of market volatilities on Socket Mobile 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 Socket Mobile with a short position of Lipocine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Socket Mobile and Lipocine.
Diversification Opportunities for Socket Mobile and Lipocine
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Socket and Lipocine is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Socket Mobile and Lipocine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipocine and Socket Mobile 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 Socket Mobile 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 Socket Mobile i.e., Socket Mobile and Lipocine go up and down completely randomly.
Pair Corralation between Socket Mobile and Lipocine
Given the investment horizon of 90 days Socket Mobile is expected to generate 0.54 times more return on investment than Lipocine. However, Socket Mobile is 1.84 times less risky than Lipocine. It trades about 0.09 of its potential returns per unit of risk. Lipocine is currently generating about -0.02 per unit of risk. If you would invest 120.00 in Socket Mobile on September 3, 2024 and sell it today you would earn a total of 42.00 from holding Socket Mobile or generate 35.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Socket Mobile vs. Lipocine
Performance |
| Timeline |
| Socket Mobile |
| Lipocine |
Socket Mobile and Lipocine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Socket Mobile and Lipocine
The main advantage of trading using opposite Socket Mobile and Lipocine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Socket Mobile 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.| Socket Mobile vs. Cricut Inc | Socket Mobile vs. Nano Dimension | Socket Mobile vs. IONQ Inc | Socket Mobile vs. AGM Group Holdings |
| Lipocine vs. DiaMedica Therapeutics | Lipocine vs. Lyra Therapeutics | Lipocine vs. Centessa Pharmaceuticals PLC |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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