Correlation Between Lipella Pharmaceuticals and Micro Imaging

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

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

Diversification Opportunities for Lipella Pharmaceuticals and Micro Imaging

0.0

Correlation Coefficient

Lipella Pharmaceuticals  Micro Imaging

Pay attention - limited upside

The 3 months correlation between Lipella and Micro is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lipella Pharmaceuticals Common and Micro Imaging Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Micro Imaging Technology and Lipella Pharmaceuticals 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 Lipella Pharmaceuticals Common are associated (or correlated) with Micro Imaging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Micro Imaging Technology has no effect on the direction of Lipella Pharmaceuticals i.e., Lipella Pharmaceuticals and Micro Imaging go up and down completely randomly.

Pair Corralation between Lipella Pharmaceuticals and Micro Imaging

If you would invest  261.00  in Lipella Pharmaceuticals Common on December 20, 2024 and sell it today you would lose (25.00) from holding Lipella Pharmaceuticals Common or give up 9.58% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Lipella Pharmaceuticals Common  vs.  Micro Imaging Technology

Lipella Pharmaceuticals

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Lipella Pharmaceuticals Common are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent basic indicators, Lipella Pharmaceuticals displayed solid returns over the last few months and may actually be approaching a breakup point.

Micro Imaging Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Micro Imaging Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Micro Imaging is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Lipella Pharmaceuticals and Micro Imaging

The main advantage of trading using opposite Lipella Pharmaceuticals and Micro Imaging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lipella Pharmaceuticals position performs unexpectedly, Micro Imaging 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 Micro Imaging will offset losses from the drop in Micro Imaging's long position.

The idea behind Lipella Pharmaceuticals Common and Micro Imaging Technology 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.

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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.