Correlation Between XOMA and Imunon
Can any of the company-specific risk be diversified away by investing in both XOMA 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 XOMA and Imunon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XOMA Corporation and Imunon Inc, you can compare the effects of market volatilities on XOMA 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 XOMA with a short position of Imunon. Check out your portfolio center. Please also check ongoing floating volatility patterns of XOMA and Imunon.
Diversification Opportunities for XOMA and Imunon
Very weak diversification
The 3 months correlation between XOMA and Imunon is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding XOMA Corp. and Imunon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imunon Inc and XOMA 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 XOMA Corporation 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 XOMA i.e., XOMA and Imunon go up and down completely randomly.
Pair Corralation between XOMA and Imunon
Assuming the 90 days horizon XOMA is expected to generate 18.97 times less return on investment than Imunon. But when comparing it to its historical volatility, XOMA Corporation is 28.27 times less risky than Imunon. It trades about 0.09 of its potential returns per unit of risk. Imunon Inc is currently generating about 0.06 of returns per unit of risk over similar time horizon. 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 |
XOMA Corp. vs. Imunon Inc
Performance |
| Timeline |
| XOMA |
| Imunon Inc |
XOMA and Imunon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XOMA and Imunon
The main advantage of trading using opposite XOMA and Imunon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XOMA 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.The idea behind XOMA Corporation and Imunon Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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