Correlation Between One Gas and Lipocine

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

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

Diversification Opportunities for One Gas and Lipocine

-0.08

Correlation Coefficient

One Gas  Lipocine

Good diversification

The 3 months correlation between One and Lipocine is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding One Gas and Lipocine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipocine and One Gas 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 One Gas are associated (or correlated) with Lipocine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lipocine has no effect on the direction of One Gas i.e., One Gas and Lipocine go up and down completely randomly.

Pair Corralation between One Gas and Lipocine

Considering the 90-day investment horizon One Gas is expected to under-perform the Lipocine. But the stock apears to be less risky and, when comparing its historical volatility, One Gas is 3.85 times less risky than Lipocine. The stock trades about 0.0 of its potential returns per unit of risk. The Lipocine is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  429.00  in Lipocine on September 12, 2024 and sell it today you would earn a total of  86.00  from holding Lipocine or generate 20.05% return on investment over 90 days.

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

One Gas  vs.  Lipocine

One Gas

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in One Gas are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, One Gas is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Lipocine

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Lipocine are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very weak fundamental indicators, Lipocine displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with One Gas and Lipocine

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

The idea behind One Gas and Lipocine 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.