Correlation Between Lixte Biotechnology and Imunon
Can any of the company-specific risk be diversified away by investing in both Lixte Biotechnology 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 Lixte Biotechnology and Imunon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lixte Biotechnology Holdings and Imunon Inc, you can compare the effects of market volatilities on Lixte Biotechnology 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 Lixte Biotechnology with a short position of Imunon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lixte Biotechnology and Imunon.
Diversification Opportunities for Lixte Biotechnology and Imunon
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lixte and Imunon is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Lixte Biotechnology Holdings and Imunon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imunon Inc and Lixte Biotechnology 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 Lixte Biotechnology Holdings 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 Lixte Biotechnology i.e., Lixte Biotechnology and Imunon go up and down completely randomly.
Pair Corralation between Lixte Biotechnology and Imunon
Given the investment horizon of 90 days Lixte Biotechnology Holdings is expected to generate 2.41 times more return on investment than Imunon. However, Lixte Biotechnology is 2.41 times more volatile than Imunon Inc. It trades about 0.04 of its potential returns per unit of risk. Imunon Inc is currently generating about -0.1 per unit of risk. If you would invest 200.00 in Lixte Biotechnology Holdings on September 18, 2024 and sell it today you would lose (1.00) from holding Lixte Biotechnology Holdings or give up 0.5% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Lixte Biotechnology Holdings vs. Imunon Inc
Performance |
Timeline |
Lixte Biotechnology |
Imunon Inc |
Lixte Biotechnology and Imunon Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lixte Biotechnology and Imunon
The main advantage of trading using opposite Lixte Biotechnology and Imunon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lixte Biotechnology 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.Lixte Biotechnology vs. Allarity Therapeutics | Lixte Biotechnology vs. Neurobo Pharmaceuticals | Lixte Biotechnology vs. Virax Biolabs Group | Lixte Biotechnology vs. Quoin Pharmaceuticals Ltd |
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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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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