Correlation Between Agilent Technologies and Imunon

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

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

Diversification Opportunities for Agilent Technologies and Imunon

0.64

Correlation Coefficient

Agilent Technologies  Imunon

Poor diversification

The 3 months correlation between Agilent and Imunon is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Imunon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imunon Inc and Agilent Technologies 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 Agilent Technologies 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 Agilent Technologies i.e., Agilent Technologies and Imunon go up and down completely randomly.

Pair Corralation between Agilent Technologies and Imunon

Taking into account the 90-day investment horizon Agilent Technologies is expected to generate 517.2 times less return on investment than Imunon. But when comparing it to its historical volatility, Agilent Technologies is 6.05 times less risky than Imunon. It trades about 0.0 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  138.00  in Imunon Inc on September 5, 2024 and sell it today you would lose (53.00) from holding Imunon Inc or give up 38.41% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Agilent Technologies  vs.  Imunon Inc

Agilent Technologies

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Agilent Technologies are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Agilent Technologies is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

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 weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Agilent Technologies and Imunon

The main advantage of trading using opposite Agilent Technologies and Imunon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies 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 Agilent Technologies 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.