Correlation Between Lipocine and Helmerich

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

By analyzing existing cross correlation between Lipocine and Helmerich and Payne, you can compare the effects of market volatilities on Lipocine and Helmerich 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 Helmerich. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lipocine and Helmerich.

Diversification Opportunities for Lipocine and Helmerich

-0.04

Correlation Coefficient

Lipocine  Helmerich

Good diversification

The 3 months correlation between Lipocine and Helmerich is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Lipocine and Helmerich and Payne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helmerich and Payne 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 Helmerich. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helmerich and Payne has no effect on the direction of Lipocine i.e., Lipocine and Helmerich go up and down completely randomly.

Pair Corralation between Lipocine and Helmerich

Given the investment horizon of 90 days Lipocine is expected to generate 2.28 times more return on investment than Helmerich. However, Lipocine is 2.28 times more volatile than Helmerich and Payne. It trades about 0.0 of its potential returns per unit of risk. Helmerich and Payne is currently generating about 0.0 per unit of risk. If you would invest  917.00  in Lipocine on October 26, 2024 and sell it today you would lose (448.00) from holding Lipocine or give up 48.85% of portfolio value over 90 days.

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

Lipocine  vs.  Helmerich and Payne

Lipocine

Risk-Adjusted Performance

0 of 100

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 latest weak performance, the Stock's fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Helmerich and Payne

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Helmerich and Payne are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Helmerich is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Lipocine and Helmerich

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

The idea behind Lipocine and Helmerich and Payne 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..