Correlation Between Lipocine and Future Health

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

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

Diversification Opportunities for Lipocine and Future Health

0.0

Correlation Coefficient

Lipocine  Future Health

Pay attention - limited upside

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

Pair Corralation between Lipocine and Future Health

If you would invest (100.00) in Future Health ESG on December 5, 2024 and sell it today you would earn a total of  100.00  from holding Future Health ESG or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Lipocine  vs.  Future Health ESG

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.

Future Health ESG

Risk-Adjusted Performance

Very Weak

Over the last 90 days Future Health ESG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Future Health is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Lipocine and Future Health

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

The idea behind Lipocine and Future Health ESG 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.