Correlation Between Vericel Corp and Imunon
Can any of the company-specific risk be diversified away by investing in both Vericel Corp 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 Vericel Corp and Imunon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vericel Corp Ord and Imunon Inc, you can compare the effects of market volatilities on Vericel Corp 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 Vericel Corp with a short position of Imunon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vericel Corp and Imunon.
Diversification Opportunities for Vericel Corp and Imunon
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Vericel and Imunon is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Vericel Corp Ord and Imunon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imunon Inc and Vericel Corp 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 Vericel Corp Ord 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 Vericel Corp i.e., Vericel Corp and Imunon go up and down completely randomly.
Pair Corralation between Vericel Corp and Imunon
Given the investment horizon of 90 days Vericel Corp is expected to generate 1.28 times less return on investment than Imunon. But when comparing it to its historical volatility, Vericel Corp Ord is 3.47 times less risky than Imunon. It trades about 0.07 of its potential returns per unit of risk. Imunon Inc is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 136.00 in Imunon Inc on September 4, 2024 and sell it today you would lose (49.00) from holding Imunon Inc or give up 36.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vericel Corp Ord vs. Imunon Inc
Performance |
| Timeline |
| Vericel Corp Ord |
| Imunon Inc |
Vericel Corp and Imunon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vericel Corp and Imunon
The main advantage of trading using opposite Vericel Corp and Imunon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vericel Corp 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.| Vericel Corp vs. Collplant Biotechnologies | Vericel Corp vs. Keros Therapeutics | Vericel Corp vs. Merus BV | Vericel Corp vs. Century Therapeutics |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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