Correlation Between MICROSOFT and Lipocine
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By analyzing existing cross correlation between MICROSOFT PORATION and Lipocine, you can compare the effects of market volatilities on MICROSOFT 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 MICROSOFT with a short position of Lipocine. Check out your portfolio center. Please also check ongoing floating volatility patterns of MICROSOFT and Lipocine.
Diversification Opportunities for MICROSOFT and Lipocine
Excellent diversification
The 3 months correlation between MICROSOFT and Lipocine is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding MICROSOFT PORATION and Lipocine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipocine and MICROSOFT 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 MICROSOFT PORATION 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 MICROSOFT i.e., MICROSOFT and Lipocine go up and down completely randomly.
Pair Corralation between MICROSOFT and Lipocine
Assuming the 90 days trading horizon MICROSOFT is expected to generate 25.11 times less return on investment than Lipocine. But when comparing it to its historical volatility, MICROSOFT PORATION is 4.69 times less risky than Lipocine. It trades about 0.01 of its potential returns per unit of risk. Lipocine is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 240.00 in Lipocine on September 14, 2024 and sell it today you would earn a total of 262.00 from holding Lipocine or generate 109.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.88% |
| Values | Daily Returns |
MICROSOFT PORATION vs. Lipocine
Performance |
| Timeline |
| MICROSOFT PORATION |
| Lipocine |
MICROSOFT and Lipocine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MICROSOFT and Lipocine
The main advantage of trading using opposite MICROSOFT and Lipocine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MICROSOFT 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.| MICROSOFT vs. Lipocine | MICROSOFT vs. Radcom | MICROSOFT vs. SunLink Health Systems | MICROSOFT vs. RadNet Inc |
| 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 CEOs Directory module to screen CEOs from public companies around the world.
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