Correlation Between SmartStop Self and Lipocine
Can any of the company-specific risk be diversified away by investing in both SmartStop Self 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 SmartStop Self and Lipocine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SmartStop Self Storage and Lipocine, you can compare the effects of market volatilities on SmartStop Self 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 SmartStop Self with a short position of Lipocine. Check out your portfolio center. Please also check ongoing floating volatility patterns of SmartStop Self and Lipocine.
Diversification Opportunities for SmartStop Self and Lipocine
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SmartStop and Lipocine is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding SmartStop Self Storage and Lipocine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipocine and SmartStop Self 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 SmartStop Self Storage 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 SmartStop Self i.e., SmartStop Self and Lipocine go up and down completely randomly.
Pair Corralation between SmartStop Self and Lipocine
Assuming the 90 days horizon SmartStop Self Storage is expected to generate 0.02 times more return on investment than Lipocine. However, SmartStop Self Storage is 53.03 times less risky than Lipocine. It trades about 0.21 of its potential returns per unit of risk. Lipocine is currently generating about -0.12 per unit of risk. If you would invest 885.00 in SmartStop Self Storage on September 5, 2024 and sell it today you would earn a total of 5.00 from holding SmartStop Self Storage or generate 0.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SmartStop Self Storage vs. Lipocine
Performance |
| Timeline |
| SmartStop Self Storage |
| Lipocine |
SmartStop Self and Lipocine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SmartStop Self and Lipocine
The main advantage of trading using opposite SmartStop Self and Lipocine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SmartStop Self 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.| SmartStop Self vs. Palo Alto Networks | SmartStop Self vs. Singular Genomics Systems | SmartStop Self vs. BlackRock | SmartStop Self vs. Deckers Outdoor |
| Lipocine vs. Crinetics Pharmaceuticals | Lipocine vs. Enanta Pharmaceuticals | Lipocine vs. Amicus Therapeutics | Lipocine vs. Connect Biopharma 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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