Correlation Between Caribou Biosciences and Inotiv
Can any of the company-specific risk be diversified away by investing in both Caribou Biosciences and Inotiv 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 Caribou Biosciences and Inotiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caribou Biosciences and Inotiv Inc, you can compare the effects of market volatilities on Caribou Biosciences and Inotiv 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 Caribou Biosciences with a short position of Inotiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caribou Biosciences and Inotiv.
Diversification Opportunities for Caribou Biosciences and Inotiv
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Caribou and Inotiv is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Caribou Biosciences and Inotiv Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inotiv Inc and Caribou Biosciences 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 Caribou Biosciences are associated (or correlated) with Inotiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inotiv Inc has no effect on the direction of Caribou Biosciences i.e., Caribou Biosciences and Inotiv go up and down completely randomly.
Pair Corralation between Caribou Biosciences and Inotiv
Given the investment horizon of 90 days Caribou Biosciences is expected to generate 3.88 times less return on investment than Inotiv. But when comparing it to its historical volatility, Caribou Biosciences is 1.15 times less risky than Inotiv. It trades about 0.03 of its potential returns per unit of risk. Inotiv Inc is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 217.00 in Inotiv Inc on September 1, 2024 and sell it today you would earn a total of 149.00 from holding Inotiv Inc or generate 68.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caribou Biosciences vs. Inotiv Inc
Performance |
| Timeline |
| Caribou Biosciences |
| Inotiv Inc |
Caribou Biosciences and Inotiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caribou Biosciences and Inotiv
The main advantage of trading using opposite Caribou Biosciences and Inotiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caribou Biosciences position performs unexpectedly, Inotiv 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 Inotiv will offset losses from the drop in Inotiv's long position.| Caribou Biosciences vs. Intellia Therapeutics | Caribou Biosciences vs. Editas Medicine | Caribou Biosciences vs. Crispr Therapeutics AG | Caribou Biosciences vs. Verve Therapeutics |
| Inotiv vs. Verve Therapeutics | Inotiv vs. Beam Therapeutics | Inotiv vs. Caribou Biosciences | Inotiv vs. Sana Biotechnology |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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