Correlation Between Solstad Offshore and Lipocine
Can any of the company-specific risk be diversified away by investing in both Solstad Offshore 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 Solstad Offshore and Lipocine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Solstad Offshore ASA and Lipocine, you can compare the effects of market volatilities on Solstad Offshore 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 Solstad Offshore with a short position of Lipocine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solstad Offshore and Lipocine.
Diversification Opportunities for Solstad Offshore and Lipocine
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Solstad and Lipocine is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Solstad Offshore ASA and Lipocine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipocine and Solstad Offshore 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 Solstad Offshore ASA 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 Solstad Offshore i.e., Solstad Offshore and Lipocine go up and down completely randomly.
Pair Corralation between Solstad Offshore and Lipocine
If you would invest 309.00 in Solstad Offshore ASA on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Solstad Offshore ASA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Solstad Offshore ASA vs. Lipocine
Performance |
| Timeline |
| Solstad Offshore ASA |
| Lipocine |
Solstad Offshore and Lipocine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solstad Offshore and Lipocine
The main advantage of trading using opposite Solstad Offshore and Lipocine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solstad Offshore 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.| Solstad Offshore vs. AP Mller | Solstad Offshore vs. COSCO SHIPPING Holdings | Solstad Offshore vs. Orient Overseas Limited |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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