Correlation Between Elevation Oncology and Lipocine

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

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

Diversification Opportunities for Elevation Oncology and Lipocine

0.58

Correlation Coefficient

Elevation Oncology  Lipocine

Very weak diversification

The 3 months correlation between Elevation and Lipocine is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Elevation Oncology and Lipocine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipocine and Elevation Oncology 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 Elevation Oncology 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 Elevation Oncology i.e., Elevation Oncology and Lipocine go up and down completely randomly.

Pair Corralation between Elevation Oncology and Lipocine

Given the investment horizon of 90 days Elevation Oncology is expected to under-perform the Lipocine. In addition to that, Elevation Oncology is 1.97 times more volatile than Lipocine. It trades about -0.11 of its total potential returns per unit of risk. Lipocine is currently generating about -0.11 per unit of volatility. If you would invest  458.00  in Lipocine on December 30, 2024 and sell it today you would lose (130.00) from holding Lipocine or give up 28.38% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Elevation Oncology  vs.  Lipocine

Elevation Oncology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Elevation Oncology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Lipocine

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lipocine has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Elevation Oncology and Lipocine

The main advantage of trading using opposite Elevation Oncology and Lipocine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elevation Oncology 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 Elevation Oncology 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 Commodity Directory module to find actively traded commodities issued by global exchanges.