Correlation Between In8bio and Magenta Therapeutics
Can any of the company-specific risk be diversified away by investing in both In8bio and Magenta Therapeutics 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 Magenta Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between In8bio Inc and Magenta Therapeutics, you can compare the effects of market volatilities on In8bio and Magenta Therapeutics 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 Magenta Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of In8bio and Magenta Therapeutics.
Diversification Opportunities for In8bio and Magenta Therapeutics
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between In8bio and Magenta is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding In8bio Inc and Magenta Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magenta Therapeutics 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 Magenta Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magenta Therapeutics has no effect on the direction of In8bio i.e., In8bio and Magenta Therapeutics go up and down completely randomly.
Pair Corralation between In8bio and Magenta Therapeutics
If you would invest 30.00 in In8bio Inc on August 28, 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 | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
In8bio Inc vs. Magenta Therapeutics
Performance |
| Timeline |
| In8bio Inc |
| Magenta Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
In8bio and Magenta Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with In8bio and Magenta Therapeutics
The main advantage of trading using opposite In8bio and Magenta Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if In8bio position performs unexpectedly, Magenta Therapeutics 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 Magenta Therapeutics will offset losses from the drop in Magenta Therapeutics' long position.| In8bio vs. Reviva Pharmaceuticals Holdings | In8bio vs. Cue Biopharma | In8bio vs. Lantern Pharma | In8bio vs. Anixa Biosciences |
| Magenta Therapeutics vs. Assembly Biosciences | Magenta Therapeutics vs. Instil Bio | Magenta Therapeutics vs. Nuvation Bio | Magenta Therapeutics vs. Achilles Therapeutics PLC |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |