Correlation Between Lipocine and SharkNinja,

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

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

Diversification Opportunities for Lipocine and SharkNinja,

0.0

Correlation Coefficient

Lipocine  SharkNinja,

Pay attention - limited upside

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

Pair Corralation between Lipocine and SharkNinja,

Given the investment horizon of 90 days Lipocine is expected to generate 2.3 times more return on investment than SharkNinja,. However, Lipocine is 2.3 times more volatile than SharkNinja,. It trades about 0.06 of its potential returns per unit of risk. SharkNinja, is currently generating about 0.12 per unit of risk. If you would invest  310.00  in Lipocine on October 6, 2024 and sell it today you would earn a total of  196.00  from holding Lipocine or generate 63.23% return on investment over 90 days.

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

Lipocine  vs.  SharkNinja,

Lipocine

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Lipocine are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very weak fundamental indicators, Lipocine may actually be approaching a critical reversion point that can send shares even higher in February 2025.

SharkNinja,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SharkNinja, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, SharkNinja, is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Lipocine and SharkNinja,

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

The idea behind Lipocine and SharkNinja, 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.