Correlation Between Cirmaker Technology and Lipocine

Can any of the company-specific risk be diversified away by investing in both Cirmaker Technology 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 Cirmaker Technology and Lipocine into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cirmaker Technology and Lipocine, you can compare the effects of market volatilities on Cirmaker Technology 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 Cirmaker Technology with a short position of Lipocine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cirmaker Technology and Lipocine.

Diversification Opportunities for Cirmaker Technology and Lipocine

-0.08

Correlation Coefficient

Cirmaker Technology  Lipocine

Good diversification

The 3 months correlation between Cirmaker and Lipocine is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Cirmaker Technology and Lipocine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipocine and Cirmaker Technology 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 Cirmaker Technology 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 Cirmaker Technology i.e., Cirmaker Technology and Lipocine go up and down completely randomly.

Pair Corralation between Cirmaker Technology and Lipocine

Given the investment horizon of 90 days Cirmaker Technology is expected to under-perform the Lipocine. But the pink sheet apears to be less risky and, when comparing its historical volatility, Cirmaker Technology is 1.14 times less risky than Lipocine. The pink sheet trades about -0.02 of its potential returns per unit of risk. The Lipocine is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  520.00  in Lipocine on October 10, 2024 and sell it today you would earn a total of  9.00  from holding Lipocine or generate 1.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Cirmaker Technology  vs.  Lipocine

Cirmaker Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cirmaker Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward-looking signals, Cirmaker Technology is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Lipocine

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Lipocine are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very weak fundamental indicators, Lipocine may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Cirmaker Technology and Lipocine

The main advantage of trading using opposite Cirmaker Technology and Lipocine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cirmaker Technology 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 Cirmaker Technology 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.

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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.