Correlation Between Incyte and Imunon
Can any of the company-specific risk be diversified away by investing in both Incyte 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 Incyte and Imunon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Incyte and Imunon Inc, you can compare the effects of market volatilities on Incyte 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 Incyte with a short position of Imunon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Incyte and Imunon.
Diversification Opportunities for Incyte and Imunon
Very good diversification
The 3 months correlation between Incyte and Imunon is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Incyte and Imunon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imunon Inc and Incyte 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 Incyte 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 Incyte i.e., Incyte and Imunon go up and down completely randomly.
Pair Corralation between Incyte and Imunon
Given the investment horizon of 90 days Incyte is expected to generate 0.57 times more return on investment than Imunon. However, Incyte is 1.75 times less risky than Imunon. It trades about 0.09 of its potential returns per unit of risk. Imunon Inc is currently generating about 0.01 per unit of risk. If you would invest 6,524 in Incyte on October 24, 2024 and sell it today you would earn a total of 823.00 from holding Incyte or generate 12.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Incyte vs. Imunon Inc
Performance |
| Timeline |
| Incyte |
| Imunon Inc |
Incyte and Imunon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Incyte and Imunon
The main advantage of trading using opposite Incyte and Imunon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Incyte 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.| Incyte vs. Alnylam Pharmaceuticals | Incyte vs. United Therapeutics | Incyte vs. Ultragenyx | Incyte vs. Apellis Pharmaceuticals |
| Imunon vs. Exicure | Imunon vs. Cyclacel Pharmaceuticals | Imunon vs. DiaMedica Therapeutics | Imunon vs. Senti Biosciences |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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