Correlation Between Imunon and XOMA
Can any of the company-specific risk be diversified away by investing in both Imunon and XOMA 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 XOMA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Imunon Inc and XOMA Corporation, you can compare the effects of market volatilities on Imunon and XOMA 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 XOMA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imunon and XOMA.
Diversification Opportunities for Imunon and XOMA
Very weak diversification
The 3 months correlation between Imunon and XOMA is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Imunon Inc and XOMA Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XOMA 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 XOMA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XOMA has no effect on the direction of Imunon i.e., Imunon and XOMA go up and down completely randomly.
Pair Corralation between Imunon and XOMA
Given the investment horizon of 90 days Imunon Inc is expected to generate 28.27 times more return on investment than XOMA. However, Imunon is 28.27 times more volatile than XOMA Corporation. It trades about 0.06 of its potential returns per unit of risk. XOMA Corporation is currently generating about 0.09 per unit of risk. If you would invest 55.00 in Imunon Inc on November 3, 2024 and sell it today you would earn a total of 36.00 from holding Imunon Inc or generate 65.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Imunon Inc vs. XOMA Corp.
Performance |
| Timeline |
| Imunon Inc |
| XOMA |
Imunon and XOMA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Imunon and XOMA
The main advantage of trading using opposite Imunon and XOMA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imunon position performs unexpectedly, XOMA 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 XOMA will offset losses from the drop in XOMA's long position.| 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |