Correlation Between Cardano and Imunon

Can any of the company-specific risk be diversified away by investing in both Cardano 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 Cardano and Imunon into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cardano and Imunon Inc, you can compare the effects of market volatilities on Cardano 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 Cardano with a short position of Imunon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardano and Imunon.

Diversification Opportunities for Cardano and Imunon

-0.57

Correlation Coefficient

Cardano  Imunon

Excellent diversification

The 3 months correlation between Cardano and Imunon is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Cardano and Imunon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imunon Inc and Cardano 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 Cardano 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 Cardano i.e., Cardano and Imunon go up and down completely randomly.

Pair Corralation between Cardano and Imunon

Assuming the 90 days trading horizon Cardano is expected to under-perform the Imunon. In addition to that, Cardano is 1.24 times more volatile than Imunon Inc. It trades about -0.09 of its total potential returns per unit of risk. Imunon Inc is currently generating about 0.03 per unit of volatility. If you would invest  90.00  in Imunon Inc on October 11, 2024 and sell it today you would earn a total of  1.00  from holding Imunon Inc or generate 1.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.45%
Values	Daily Returns

Cardano  vs.  Imunon Inc

Cardano

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Cardano are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Cardano exhibited solid returns over the last few months and may actually be approaching a breakup point.

Imunon Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Imunon Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Imunon is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Cardano and Imunon

The main advantage of trading using opposite Cardano and Imunon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardano 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 Cardano 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.

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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.