Correlation Between LMF Acquisition and PolyPid

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

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

Diversification Opportunities for LMF Acquisition and PolyPid

-0.65

Correlation Coefficient

LMF Acquisition  PolyPid

Excellent diversification

The 3 months correlation between LMF and PolyPid is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding LMF Acquisition Opportunities and PolyPid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PolyPid and LMF Acquisition 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 LMF Acquisition Opportunities are associated (or correlated) with PolyPid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PolyPid has no effect on the direction of LMF Acquisition i.e., LMF Acquisition and PolyPid go up and down completely randomly.

Pair Corralation between LMF Acquisition and PolyPid

Considering the 90-day investment horizon LMF Acquisition is expected to generate 1.59 times less return on investment than PolyPid. In addition to that, LMF Acquisition is 3.52 times more volatile than PolyPid. It trades about 0.03 of its total potential returns per unit of risk. PolyPid is currently generating about 0.16 per unit of volatility. If you would invest  255.00  in PolyPid on May 25, 2025 and sell it today you would earn a total of  95.00  from holding PolyPid or generate 37.25% return on investment over 90 days.

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

LMF Acquisition Opportunities  vs.  PolyPid

LMF Acquisition Oppo

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in LMF Acquisition Opportunities are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak fundamental indicators, LMF Acquisition unveiled solid returns over the last few months and may actually be approaching a breakup point.

PolyPid

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in PolyPid are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, PolyPid exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with LMF Acquisition and PolyPid

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

The idea behind LMF Acquisition Opportunities and PolyPid 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.