Correlation Between Astar and Imunon

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

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

Diversification Opportunities for Astar and Imunon

-0.51

Correlation Coefficient

Astar  Imunon

Excellent diversification

The 3 months correlation between Astar and Imunon is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Astar and Imunon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imunon Inc and Astar 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 Astar 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 Astar i.e., Astar and Imunon go up and down completely randomly.

Pair Corralation between Astar and Imunon

Assuming the 90 days trading horizon Astar is expected to generate 1.3 times less return on investment than Imunon. But when comparing it to its historical volatility, Astar is 1.21 times less risky than Imunon. It trades about 0.02 of its potential returns per unit of risk. Imunon Inc is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  163.00  in Imunon Inc on October 26, 2024 and sell it today you would lose (67.23) from holding Imunon Inc or give up 41.25% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	60.32%
Values	Daily Returns

Astar  vs.  Imunon Inc

Astar

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Astar has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Astar is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Imunon Inc

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Imunon Inc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Imunon may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Astar and Imunon

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

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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.