Correlation Between Dow Jones and INmune Bio
Can any of the company-specific risk be diversified away by investing in both Dow Jones 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 Dow Jones and INmune Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dow Jones Industrial and INmune Bio, you can compare the effects of market volatilities on Dow Jones 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 Dow Jones with a short position of INmune Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and INmune Bio.
Diversification Opportunities for Dow Jones and INmune Bio
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dow and INmune is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and INmune Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INmune Bio and Dow Jones 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 Dow Jones Industrial 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 Dow Jones i.e., Dow Jones and INmune Bio go up and down completely randomly.
Pair Corralation between Dow Jones and INmune Bio
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.15 times more return on investment than INmune Bio. However, Dow Jones Industrial is 6.52 times less risky than INmune Bio. It trades about 0.08 of its potential returns per unit of risk. INmune Bio is currently generating about 0.01 per unit of risk. If you would invest 3,378,148 in Dow Jones Industrial on August 29, 2024 and sell it today you would earn a total of 1,107,883 from holding Dow Jones Industrial or generate 32.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. INmune Bio
Performance |
| Timeline |
Dow Jones and INmune Bio Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
INmune Bio
Pair trading matchups for INmune Bio
Pair Trading with Dow Jones and INmune Bio
The main advantage of trading using opposite Dow Jones and INmune Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones 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.| Dow Jones vs. CECO Environmental Corp | Dow Jones vs. Western Acquisition Ventures | Dow Jones vs. Tyson Foods | Dow Jones vs. Inflection Point Acquisition |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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