Correlation Between CleanCore Solutions and Lipocine

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

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

Diversification Opportunities for CleanCore Solutions and Lipocine

0.15

Correlation Coefficient

CleanCore Solutions  Lipocine

Average diversification

The 3 months correlation between CleanCore and Lipocine is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding CleanCore Solutions and Lipocine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipocine and CleanCore Solutions 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 CleanCore Solutions 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 CleanCore Solutions i.e., CleanCore Solutions and Lipocine go up and down completely randomly.

Pair Corralation between CleanCore Solutions and Lipocine

Given the investment horizon of 90 days CleanCore Solutions is expected to generate 12.09 times less return on investment than Lipocine. In addition to that, CleanCore Solutions is 1.81 times more volatile than Lipocine. It trades about 0.0 of its total potential returns per unit of risk. Lipocine is currently generating about 0.03 per unit of volatility. If you would invest  474.00  in Lipocine on September 25, 2024 and sell it today you would earn a total of  13.00  from holding Lipocine or generate 2.74% return on investment over 90 days.

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

CleanCore Solutions  vs.  Lipocine

CleanCore Solutions

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CleanCore Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, CleanCore Solutions is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

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 unsteady fundamental indicators, Lipocine may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with CleanCore Solutions and Lipocine

The main advantage of trading using opposite CleanCore Solutions and Lipocine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CleanCore Solutions 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 CleanCore Solutions 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 Commodity Directory module to find actively traded commodities issued by global exchanges.