Correlation Between Payoneer Global and Lipocine

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

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

Diversification Opportunities for Payoneer Global and Lipocine

0.17

Correlation Coefficient

Payoneer Global  Lipocine

Average diversification

The 3 months correlation between Payoneer and Lipocine is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Payoneer Global and Lipocine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipocine and Payoneer Global 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 Payoneer Global 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 Payoneer Global i.e., Payoneer Global and Lipocine go up and down completely randomly.

Pair Corralation between Payoneer Global and Lipocine

Given the investment horizon of 90 days Payoneer Global is expected to generate 0.65 times more return on investment than Lipocine. However, Payoneer Global is 1.54 times less risky than Lipocine. It trades about 0.19 of its potential returns per unit of risk. Lipocine is currently generating about 0.07 per unit of risk. If you would invest  738.00  in Payoneer Global on September 13, 2024 and sell it today you would earn a total of  298.00  from holding Payoneer Global or generate 40.38% return on investment over 90 days.

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

Payoneer Global  vs.  Lipocine

Payoneer Global

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Payoneer Global are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Payoneer Global displayed solid returns over the last few months and may actually be approaching a breakup point.

Lipocine

Risk-Adjusted Performance

5 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Lipocine are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain fundamental indicators, Lipocine displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Payoneer Global and Lipocine

The main advantage of trading using opposite Payoneer Global and Lipocine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Payoneer Global 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 Payoneer Global 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.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.