Correlation Between ANT and Imunon

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

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

Diversification Opportunities for ANT and Imunon

0.26

Correlation Coefficient

ANT  Imunon

Modest diversification

The 3 months correlation between ANT and Imunon is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Imunon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imunon Inc and ANT 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 ANT 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 ANT i.e., ANT and Imunon go up and down completely randomly.

Pair Corralation between ANT and Imunon

Assuming the 90 days trading horizon ANT is expected to generate 3.08 times more return on investment than Imunon. However, ANT is 3.08 times more volatile than Imunon Inc. It trades about 0.11 of its potential returns per unit of risk. Imunon Inc is currently generating about 0.03 per unit of risk. If you would invest  130.00  in ANT on October 11, 2024 and sell it today you would earn a total of  17.00  from holding ANT or generate 13.08% return on investment over 90 days.

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

ANT  vs.  Imunon Inc

ANT

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ANT are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, ANT 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 ANT and Imunon

The main advantage of trading using opposite ANT and Imunon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT 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 ANT 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.