Correlation Between Lixte Biotechnology and Imunon

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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 Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Lixte Biotechnology Holdings  vs.  Imunon Inc

 Performance 
       Timeline  
Lixte Biotechnology 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Lixte Biotechnology Holdings are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Lixte Biotechnology unveiled solid returns over the last few months and may actually be approaching a breakup point.
Imunon Inc 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
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 inconsistent 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.

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.
The idea behind Lixte Biotechnology Holdings 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

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