Correlation Between Micro Imaging and Lipella Pharmaceuticals

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

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

Diversification Opportunities for Micro Imaging and Lipella Pharmaceuticals

0.0

Correlation Coefficient

Micro Imaging  Lipella Pharmaceuticals

Pay attention - limited upside

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

Pair Corralation between Micro Imaging and Lipella Pharmaceuticals

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

Micro Imaging Technology  vs.  Lipella Pharmaceuticals Common

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.

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.

Pair Trading with Micro Imaging and Lipella Pharmaceuticals

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

The idea behind Micro Imaging Technology and Lipella Pharmaceuticals Common 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.