Correlation Between Caterpillar and Imunon
Can any of the company-specific risk be diversified away by investing in both Caterpillar 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 Caterpillar and Imunon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caterpillar and Imunon Inc, you can compare the effects of market volatilities on Caterpillar 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 Caterpillar with a short position of Imunon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caterpillar and Imunon.
Diversification Opportunities for Caterpillar and Imunon
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Caterpillar and Imunon is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Caterpillar and Imunon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imunon Inc and Caterpillar 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 Caterpillar 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 Caterpillar i.e., Caterpillar and Imunon go up and down completely randomly.
Pair Corralation between Caterpillar and Imunon
Considering the 90-day investment horizon Caterpillar is expected to generate 0.28 times more return on investment than Imunon. However, Caterpillar is 3.53 times less risky than Imunon. It trades about 0.23 of its potential returns per unit of risk. Imunon Inc is currently generating about -0.01 per unit of risk. If you would invest 41,137 in Caterpillar on July 16, 2025 and sell it today you would earn a total of 9,339 from holding Caterpillar or generate 22.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caterpillar vs. Imunon Inc
Performance |
| Timeline |
| Caterpillar |
| Imunon Inc |
Caterpillar and Imunon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caterpillar and Imunon
The main advantage of trading using opposite Caterpillar and Imunon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caterpillar 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.| Caterpillar vs. Deere Company | Caterpillar vs. 3M Company | Caterpillar vs. Johnson Johnson | Caterpillar vs. Chevron Corp |
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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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