Correlation Between Eterna Therapeutics and Imunon
Can any of the company-specific risk be diversified away by investing in both Eterna 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 Eterna Therapeutics and Imunon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eterna Therapeutics and Imunon Inc, you can compare the effects of market volatilities on Eterna 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 Eterna Therapeutics with a short position of Imunon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eterna Therapeutics and Imunon.
Diversification Opportunities for Eterna Therapeutics and Imunon
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eterna and Imunon is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Eterna Therapeutics and Imunon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imunon Inc and Eterna 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 Eterna Therapeutics 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 Eterna Therapeutics i.e., Eterna Therapeutics and Imunon go up and down completely randomly.
Pair Corralation between Eterna Therapeutics and Imunon
Given the investment horizon of 90 days Eterna Therapeutics is expected to under-perform the Imunon. In addition to that, Eterna Therapeutics is 1.77 times more volatile than Imunon Inc. It trades about -0.33 of its total potential returns per unit of risk. Imunon Inc is currently generating about -0.09 per unit of volatility. If you would invest 103.00 in Imunon Inc on September 13, 2024 and sell it today you would lose (18.82) from holding Imunon Inc or give up 18.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eterna Therapeutics vs. Imunon Inc
Performance |
| Timeline |
| Eterna Therapeutics |
| Imunon Inc |
Eterna Therapeutics and Imunon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eterna Therapeutics and Imunon
The main advantage of trading using opposite Eterna Therapeutics and Imunon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eterna 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.| Eterna Therapeutics vs. Puma Biotechnology | Eterna Therapeutics vs. Iovance Biotherapeutics | Eterna Therapeutics vs. Sarepta Therapeutics | Eterna Therapeutics vs. Day One Biopharmaceuticals |
| 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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