Correlation Between Lipocine and LandBridge Company

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

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

Diversification Opportunities for Lipocine and LandBridge Company

-0.15

Correlation Coefficient

Lipocine  LandBridge Company

Good diversification

The 3 months correlation between Lipocine and LandBridge is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Lipocine and LandBridge Company LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LandBridge Company 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 LandBridge Company. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LandBridge Company has no effect on the direction of Lipocine i.e., Lipocine and LandBridge Company go up and down completely randomly.

Pair Corralation between Lipocine and LandBridge Company

Given the investment horizon of 90 days Lipocine is expected to under-perform the LandBridge Company. But the stock apears to be less risky and, when comparing its historical volatility, Lipocine is 1.21 times less risky than LandBridge Company. The stock trades about -0.1 of its potential returns per unit of risk. The LandBridge Company LLC is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  5,843  in LandBridge Company LLC on December 21, 2024 and sell it today you would earn a total of  1,862  from holding LandBridge Company LLC or generate 31.87% return on investment over 90 days.

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

Lipocine  vs.  LandBridge Company LLC

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.

LandBridge Company

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in LandBridge Company LLC are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain fundamental drivers, LandBridge Company sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Lipocine and LandBridge Company

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

The idea behind Lipocine and LandBridge Company LLC 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.