Correlation Between Laboratory and Imunon
Can any of the company-specific risk be diversified away by investing in both Laboratory 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 Laboratory and Imunon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Laboratory of and Imunon Inc, you can compare the effects of market volatilities on Laboratory 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 Laboratory with a short position of Imunon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Laboratory and Imunon.
Diversification Opportunities for Laboratory and Imunon
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Laboratory and Imunon is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Laboratory of and Imunon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imunon Inc and Laboratory 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 Laboratory of 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 Laboratory i.e., Laboratory and Imunon go up and down completely randomly.
Pair Corralation between Laboratory and Imunon
Allowing for the 90-day total investment horizon Laboratory of is expected to generate 0.28 times more return on investment than Imunon. However, Laboratory of is 3.63 times less risky than Imunon. It trades about 0.07 of its potential returns per unit of risk. Imunon Inc is currently generating about -0.04 per unit of risk. If you would invest 22,718 in Laboratory of on November 3, 2024 and sell it today you would earn a total of 2,262 from holding Laboratory of or generate 9.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Laboratory of vs. Imunon Inc
Performance |
| Timeline |
| Laboratory |
| Imunon Inc |
Laboratory and Imunon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Laboratory and Imunon
The main advantage of trading using opposite Laboratory and Imunon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Laboratory 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.| Laboratory vs. Quest Diagnostics Incorporated | Laboratory vs. Waters | Laboratory vs. Universal Health Services | Laboratory vs. Humana Inc |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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