Correlation Between Nkarta and Imunon
Can any of the company-specific risk be diversified away by investing in both Nkarta 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 Nkarta and Imunon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nkarta Inc and Imunon Inc, you can compare the effects of market volatilities on Nkarta 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 Nkarta with a short position of Imunon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nkarta and Imunon.
Diversification Opportunities for Nkarta and Imunon
Very poor diversification
The 3 months correlation between Nkarta and Imunon is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Nkarta Inc and Imunon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imunon Inc and Nkarta 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 Nkarta Inc 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 Nkarta i.e., Nkarta and Imunon go up and down completely randomly.
Pair Corralation between Nkarta and Imunon
Given the investment horizon of 90 days Nkarta Inc is expected to generate 0.95 times more return on investment than Imunon. However, Nkarta Inc is 1.05 times less risky than Imunon. It trades about -0.04 of its potential returns per unit of risk. Imunon Inc is currently generating about -0.06 per unit of risk. If you would invest 308.00 in Nkarta Inc on September 1, 2024 and sell it today you would lose (21.00) from holding Nkarta Inc or give up 6.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nkarta Inc vs. Imunon Inc
Performance |
| Timeline |
| Nkarta Inc |
| Imunon Inc |
Nkarta and Imunon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nkarta and Imunon
The main advantage of trading using opposite Nkarta and Imunon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nkarta 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.| Nkarta vs. Monte Rosa Therapeutics | Nkarta vs. Lyell Immunopharma | Nkarta vs. Generation Bio Co | Nkarta vs. Sana Biotechnology |
| 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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