Correlation Between Adaptimmune Therapeutics and Imunon
Can any of the company-specific risk be diversified away by investing in both Adaptimmune Therapeutics and Imunon 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 Adaptimmune Therapeutics and Imunon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adaptimmune Therapeutics Plc and Imunon Inc, you can compare the effects of market volatilities on Adaptimmune Therapeutics and Imunon 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 Adaptimmune Therapeutics with a short position of Imunon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adaptimmune Therapeutics and Imunon.
Diversification Opportunities for Adaptimmune Therapeutics and Imunon
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Adaptimmune and Imunon is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Adaptimmune Therapeutics Plc and Imunon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imunon Inc and Adaptimmune Therapeutics 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 Adaptimmune Therapeutics Plc are associated (or correlated) with Imunon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imunon Inc has no effect on the direction of Adaptimmune Therapeutics i.e., Adaptimmune Therapeutics and Imunon go up and down completely randomly.
Pair Corralation between Adaptimmune Therapeutics and Imunon
Given the investment horizon of 90 days Adaptimmune Therapeutics Plc is expected to generate 1.26 times more return on investment than Imunon. However, Adaptimmune Therapeutics is 1.26 times more volatile than Imunon Inc. It trades about 0.03 of its potential returns per unit of risk. Imunon Inc is currently generating about -0.06 per unit of risk. If you would invest 73.00 in Adaptimmune Therapeutics Plc on September 1, 2024 and sell it today you would lose (1.00) from holding Adaptimmune Therapeutics Plc or give up 1.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adaptimmune Therapeutics Plc vs. Imunon Inc
Performance |
| Timeline |
| Adaptimmune Therapeutics |
| Imunon Inc |
Adaptimmune Therapeutics and Imunon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adaptimmune Therapeutics and Imunon
The main advantage of trading using opposite Adaptimmune Therapeutics and Imunon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adaptimmune Therapeutics position performs unexpectedly, Imunon 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 Imunon will offset losses from the drop in Imunon's long position.The idea behind Adaptimmune Therapeutics Plc and Imunon Inc 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.
| Imunon vs. Exicure | Imunon vs. Cyclacel Pharmaceuticals | Imunon vs. Histogen | Imunon vs. DiaMedica Therapeutics |
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..
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |