Correlation Between Galaxy Payroll and Lipocine

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

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

Diversification Opportunities for Galaxy Payroll and Lipocine

0.38

Correlation Coefficient

Galaxy Payroll  Lipocine

Weak diversification

The 3 months correlation between Galaxy and Lipocine is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Galaxy Payroll Group and Lipocine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipocine and Galaxy Payroll 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 Galaxy Payroll Group 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 Galaxy Payroll i.e., Galaxy Payroll and Lipocine go up and down completely randomly.

Pair Corralation between Galaxy Payroll and Lipocine

Given the investment horizon of 90 days Galaxy Payroll Group is expected to under-perform the Lipocine. In addition to that, Galaxy Payroll is 1.48 times more volatile than Lipocine. It trades about -0.08 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 29, 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	Very Weak
Accuracy	100.0%
Values	Daily Returns

Galaxy Payroll Group  vs.  Lipocine

Galaxy Payroll Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Galaxy Payroll Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

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 Galaxy Payroll and Lipocine

The main advantage of trading using opposite Galaxy Payroll and Lipocine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galaxy Payroll 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 Galaxy Payroll Group 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.