Correlation Between Lipocine and Willscot Mobile

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

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

Diversification Opportunities for Lipocine and Willscot Mobile

0.0

Correlation Coefficient

Lipocine  Willscot Mobile

Pay attention - limited upside

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

Pair Corralation between Lipocine and Willscot Mobile

Given the investment horizon of 90 days Lipocine is expected to generate 1.48 times more return on investment than Willscot Mobile. However, Lipocine is 1.48 times more volatile than Willscot Mobile Mini. It trades about 0.05 of its potential returns per unit of risk. Willscot Mobile Mini is currently generating about -0.08 per unit of risk. If you would invest  455.00  in Lipocine on September 24, 2024 and sell it today you would earn a total of  32.00  from holding Lipocine or generate 7.03% return on investment over 90 days.

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

Lipocine  vs.  Willscot Mobile Mini

Lipocine

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Lipocine are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady fundamental indicators, Lipocine displayed solid returns over the last few months and may actually be approaching a breakup point.

Willscot Mobile Mini

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Willscot Mobile Mini has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Lipocine and Willscot Mobile

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

The idea behind Lipocine and Willscot Mobile Mini 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..