Correlation Between Ibio and Anixa Biosciences
Can any of the company-specific risk be diversified away by investing in both Ibio and Anixa Biosciences 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 Anixa Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ibio Inc and Anixa Biosciences, you can compare the effects of market volatilities on Ibio and Anixa Biosciences 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 Anixa Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ibio and Anixa Biosciences.
Diversification Opportunities for Ibio and Anixa Biosciences
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ibio and Anixa is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Ibio Inc and Anixa Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anixa Biosciences 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 Anixa Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anixa Biosciences has no effect on the direction of Ibio i.e., Ibio and Anixa Biosciences go up and down completely randomly.
Pair Corralation between Ibio and Anixa Biosciences
Given the investment horizon of 90 days Ibio Inc is expected to generate 3.46 times more return on investment than Anixa Biosciences. However, Ibio is 3.46 times more volatile than Anixa Biosciences. It trades about 0.07 of its potential returns per unit of risk. Anixa Biosciences is currently generating about 0.01 per unit of risk. If you would invest 122.00 in Ibio Inc on September 1, 2024 and sell it today you would earn a total of 172.00 from holding Ibio Inc or generate 140.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ibio Inc vs. Anixa Biosciences
Performance |
| Timeline |
| Ibio Inc |
| Anixa Biosciences |
Ibio and Anixa Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ibio and Anixa Biosciences
The main advantage of trading using opposite Ibio and Anixa Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ibio position performs unexpectedly, Anixa Biosciences 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 Anixa Biosciences will offset losses from the drop in Anixa Biosciences' long position.| Ibio vs. Jaguar Animal Health | Ibio vs. GeoVax Labs | Ibio vs. Ocugen Inc | Ibio vs. Tonix Pharmaceuticals Holding |
| Anixa Biosciences vs. Cue Biopharma | Anixa Biosciences vs. INmune Bio | Anixa Biosciences vs. In8bio Inc | Anixa Biosciences vs. PolyPid |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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