Correlation Between Lipocine and Smithfield Foods,

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

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

Diversification Opportunities for Lipocine and Smithfield Foods,

-0.21

Correlation Coefficient

Lipocine  Smithfield Foods,

Very good diversification

The 3 months correlation between Lipocine and Smithfield is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Lipocine and Smithfield Foods, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smithfield Foods, Common 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 Smithfield Foods,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smithfield Foods, Common has no effect on the direction of Lipocine i.e., Lipocine and Smithfield Foods, go up and down completely randomly.

Pair Corralation between Lipocine and Smithfield Foods,

Given the investment horizon of 90 days Lipocine is expected to under-perform the Smithfield Foods,. In addition to that, Lipocine is 3.61 times more volatile than Smithfield Foods, Common. It trades about 0.0 of its total potential returns per unit of risk. Smithfield Foods, Common is currently generating about 0.14 per unit of volatility. If you would invest  2,202  in Smithfield Foods, Common on May 6, 2025 and sell it today you would earn a total of  230.00  from holding Smithfield Foods, Common or generate 10.45% return on investment over 90 days.

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

Lipocine  vs.  Smithfield Foods, Common

Lipocine

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lipocine has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Lipocine is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Smithfield Foods, Common

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Smithfield Foods, Common are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting technical and fundamental indicators, Smithfield Foods, may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Lipocine and Smithfield Foods,

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

The idea behind Lipocine and Smithfield Foods, Common 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..