Correlation Between Exelixis and INmune Bio
Can any of the company-specific risk be diversified away by investing in both Exelixis 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 Exelixis and INmune Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exelixis and INmune Bio, you can compare the effects of market volatilities on Exelixis 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 Exelixis with a short position of INmune Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exelixis and INmune Bio.
Diversification Opportunities for Exelixis and INmune Bio
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Exelixis and INmune is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Exelixis and INmune Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INmune Bio and Exelixis 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 Exelixis 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 Exelixis i.e., Exelixis and INmune Bio go up and down completely randomly.
Pair Corralation between Exelixis and INmune Bio
Given the investment horizon of 90 days Exelixis is expected to generate 0.82 times more return on investment than INmune Bio. However, Exelixis is 1.22 times less risky than INmune Bio. It trades about 0.36 of its potential returns per unit of risk. INmune Bio is currently generating about -0.3 per unit of risk. If you would invest 2,873 in Exelixis on August 30, 2024 and sell it today you would earn a total of 720.00 from holding Exelixis or generate 25.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exelixis vs. INmune Bio
Performance |
| Timeline |
| Exelixis |
| INmune Bio |
Exelixis and INmune Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exelixis and INmune Bio
The main advantage of trading using opposite Exelixis and INmune Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exelixis 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.| Exelixis vs. TG Therapeutics | Exelixis vs. Viking Therapeutics | Exelixis vs. Madrigal Pharmaceuticals | Exelixis vs. BioXcel 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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