Correlation Between In8bio and INmune Bio
Can any of the company-specific risk be diversified away by investing in both In8bio 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 In8bio and INmune Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between In8bio Inc and INmune Bio, you can compare the effects of market volatilities on In8bio 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 In8bio with a short position of INmune Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of In8bio and INmune Bio.
Diversification Opportunities for In8bio and INmune Bio
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between In8bio and INmune is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding In8bio Inc and INmune Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INmune Bio and In8bio 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 In8bio Inc 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 In8bio i.e., In8bio and INmune Bio go up and down completely randomly.
Pair Corralation between In8bio and INmune Bio
Given the investment horizon of 90 days In8bio Inc is expected to generate 1.41 times more return on investment than INmune Bio. However, In8bio is 1.41 times more volatile than INmune Bio. It trades about 0.03 of its potential returns per unit of risk. INmune Bio is currently generating about -0.04 per unit of risk. If you would invest 32.00 in In8bio Inc on August 25, 2024 and sell it today you would earn a total of 0.00 from holding In8bio Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
In8bio Inc vs. INmune Bio
Performance |
| Timeline |
| In8bio Inc |
| INmune Bio |
In8bio and INmune Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with In8bio and INmune Bio
The main advantage of trading using opposite In8bio and INmune Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if In8bio 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.| In8bio vs. Reviva Pharmaceuticals Holdings | In8bio vs. Cue Biopharma | In8bio vs. Lantern Pharma | In8bio vs. Anixa Biosciences |
| INmune Bio vs. Eliem Therapeutics | INmune Bio vs. HCW Biologics | INmune Bio vs. RenovoRx | INmune Bio vs. Scpharmaceuticals |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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