Correlation Between Biocept and Ibio
Can any of the company-specific risk be diversified away by investing in both Biocept and Ibio 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 Biocept and Ibio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biocept and Ibio Inc, you can compare the effects of market volatilities on Biocept and Ibio 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 Biocept with a short position of Ibio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biocept and Ibio.
Diversification Opportunities for Biocept and Ibio
Pay attention - limited upside
The 3 months correlation between Biocept and Ibio is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Biocept and Ibio Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ibio Inc and Biocept 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 Biocept are associated (or correlated) with Ibio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ibio Inc has no effect on the direction of Biocept i.e., Biocept and Ibio go up and down completely randomly.
Pair Corralation between Biocept and Ibio
If you would invest 241.00 in Ibio Inc on September 1, 2024 and sell it today you would earn a total of 53.00 from holding Ibio Inc or generate 21.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Biocept vs. Ibio Inc
Performance |
| Timeline |
| Biocept |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ibio Inc |
Biocept and Ibio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biocept and Ibio
The main advantage of trading using opposite Biocept and Ibio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biocept position performs unexpectedly, Ibio 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 Ibio will offset losses from the drop in Ibio's long position.The idea behind Biocept and Ibio 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.| Ibio vs. Jaguar Animal Health | Ibio vs. GeoVax Labs | Ibio vs. Ocugen Inc | Ibio vs. Tonix Pharmaceuticals Holding |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |