Correlation Between In8bio and XBiotech
Can any of the company-specific risk be diversified away by investing in both In8bio and XBiotech 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 XBiotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between In8bio Inc and XBiotech, you can compare the effects of market volatilities on In8bio and XBiotech 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 XBiotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of In8bio and XBiotech.
Diversification Opportunities for In8bio and XBiotech
Very good diversification
The 3 months correlation between In8bio and XBiotech is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding In8bio Inc and XBiotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XBiotech 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 XBiotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XBiotech has no effect on the direction of In8bio i.e., In8bio and XBiotech go up and down completely randomly.
Pair Corralation between In8bio and XBiotech
Given the investment horizon of 90 days In8bio Inc is expected to under-perform the XBiotech. In addition to that, In8bio is 1.92 times more volatile than XBiotech. It trades about -0.01 of its total potential returns per unit of risk. XBiotech is currently generating about 0.07 per unit of volatility. If you would invest 418.00 in XBiotech on September 2, 2024 and sell it today you would earn a total of 343.00 from holding XBiotech or generate 82.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
In8bio Inc vs. XBiotech
Performance |
| Timeline |
| In8bio Inc |
| XBiotech |
In8bio and XBiotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with In8bio and XBiotech
The main advantage of trading using opposite In8bio and XBiotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if In8bio position performs unexpectedly, XBiotech 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 XBiotech will offset losses from the drop in XBiotech's long position.| In8bio vs. Reviva Pharmaceuticals Holdings | In8bio vs. Cue Biopharma | In8bio vs. Lantern Pharma | In8bio vs. Anixa Biosciences |
| XBiotech vs. Tff Pharmaceuticals | XBiotech vs. Eliem Therapeutics | XBiotech vs. Inhibrx | XBiotech vs. Enliven Therapeutics |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |