Correlation Between Annexon and INmune Bio
Can any of the company-specific risk be diversified away by investing in both Annexon and INmune Bio 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 Annexon and INmune Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Annexon and INmune Bio, you can compare the effects of market volatilities on Annexon and INmune Bio 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 Annexon with a short position of INmune Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Annexon and INmune Bio.
Diversification Opportunities for Annexon and INmune Bio
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Annexon and INmune is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Annexon and INmune Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INmune Bio and Annexon 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 Annexon are associated (or correlated) with INmune Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INmune Bio has no effect on the direction of Annexon i.e., Annexon and INmune Bio go up and down completely randomly.
Pair Corralation between Annexon and INmune Bio
Given the investment horizon of 90 days Annexon is expected to under-perform the INmune Bio. But the stock apears to be less risky and, when comparing its historical volatility, Annexon is 1.17 times less risky than INmune Bio. The stock trades about -0.5 of its potential returns per unit of risk. The INmune Bio is currently generating about -0.27 of returns per unit of risk over similar time horizon. If you would invest 617.00 in INmune Bio on August 29, 2024 and sell it today you would lose (129.00) from holding INmune Bio or give up 20.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Annexon vs. INmune Bio
Performance |
| Timeline |
| Annexon |
| INmune Bio |
Annexon and INmune Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Annexon and INmune Bio
The main advantage of trading using opposite Annexon and INmune Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Annexon position performs unexpectedly, INmune Bio 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 INmune Bio will offset losses from the drop in INmune Bio's long position.| Annexon vs. Eliem Therapeutics | Annexon vs. Scpharmaceuticals | Annexon vs. Milestone Pharmaceuticals | Annexon vs. Seres Therapeutics |
| INmune Bio vs. Tff Pharmaceuticals | INmune Bio vs. Anebulo Pharmaceuticals | INmune Bio vs. AN2 Therapeutics | INmune Bio vs. Cue Biopharma |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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