Correlation Between Ibio and Aditxt
Can any of the company-specific risk be diversified away by investing in both Ibio and Aditxt 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 Ibio and Aditxt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ibio Inc and Aditxt Inc, you can compare the effects of market volatilities on Ibio and Aditxt 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 Ibio with a short position of Aditxt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ibio and Aditxt.
Diversification Opportunities for Ibio and Aditxt
Pay attention - limited upside
The 3 months correlation between Ibio and Aditxt is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Ibio Inc and Aditxt Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aditxt Inc and Ibio 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 Ibio Inc are associated (or correlated) with Aditxt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aditxt Inc has no effect on the direction of Ibio i.e., Ibio and Aditxt go up and down completely randomly.
Pair Corralation between Ibio and Aditxt
Given the investment horizon of 90 days Ibio is expected to generate 5.56 times less return on investment than Aditxt. But when comparing it to its historical volatility, Ibio Inc is 4.08 times less risky than Aditxt. It trades about 0.02 of its potential returns per unit of risk. Aditxt Inc is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 6,680 in Aditxt Inc on August 29, 2024 and sell it today you would lose (6,645) from holding Aditxt Inc or give up 99.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ibio Inc vs. Aditxt Inc
Performance |
| Timeline |
| Ibio Inc |
| Aditxt Inc |
Ibio and Aditxt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ibio and Aditxt
The main advantage of trading using opposite Ibio and Aditxt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ibio position performs unexpectedly, Aditxt 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 Aditxt will offset losses from the drop in Aditxt's long position.| Ibio vs. Jaguar Animal Health | Ibio vs. GeoVax Labs | Ibio vs. Ocugen Inc | Ibio vs. Tonix Pharmaceuticals Holding |
| Aditxt vs. Neurobo Pharmaceuticals | Aditxt vs. Dermata Therapeutics | Aditxt vs. Unicycive Therapeutics | Aditxt vs. Revelation Biosciences |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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