Correlation Between Imunon and Cyclacel Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Imunon and Cyclacel Pharmaceuticals 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 Imunon and Cyclacel Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Imunon Inc and Cyclacel Pharmaceuticals, you can compare the effects of market volatilities on Imunon and Cyclacel Pharmaceuticals 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 Imunon with a short position of Cyclacel Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imunon and Cyclacel Pharmaceuticals.
Diversification Opportunities for Imunon and Cyclacel Pharmaceuticals
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Imunon and Cyclacel is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Imunon Inc and Cyclacel Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cyclacel Pharmaceuticals and Imunon 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 Imunon Inc are associated (or correlated) with Cyclacel Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cyclacel Pharmaceuticals has no effect on the direction of Imunon i.e., Imunon and Cyclacel Pharmaceuticals go up and down completely randomly.
Pair Corralation between Imunon and Cyclacel Pharmaceuticals
Given the investment horizon of 90 days Imunon Inc is expected to generate 0.65 times more return on investment than Cyclacel Pharmaceuticals. However, Imunon Inc is 1.53 times less risky than Cyclacel Pharmaceuticals. It trades about -0.06 of its potential returns per unit of risk. Cyclacel Pharmaceuticals is currently generating about -0.21 per unit of risk. If you would invest 93.00 in Imunon Inc on September 1, 2024 and sell it today you would lose (9.00) from holding Imunon Inc or give up 9.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Imunon Inc vs. Cyclacel Pharmaceuticals
Performance |
| Timeline |
| Imunon Inc |
| Cyclacel Pharmaceuticals |
Imunon and Cyclacel Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Imunon and Cyclacel Pharmaceuticals
The main advantage of trading using opposite Imunon and Cyclacel Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imunon position performs unexpectedly, Cyclacel Pharmaceuticals 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 Cyclacel Pharmaceuticals will offset losses from the drop in Cyclacel Pharmaceuticals' long position.| Imunon vs. Exicure | Imunon vs. Cyclacel Pharmaceuticals | Imunon vs. Histogen | Imunon vs. DiaMedica Therapeutics |
| Cyclacel Pharmaceuticals vs. Eliem Therapeutics | Cyclacel Pharmaceuticals vs. Ikena Oncology | Cyclacel Pharmaceuticals vs. Ovid Therapeutics | Cyclacel Pharmaceuticals vs. Connect Biopharma Holdings |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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