Correlation Between INmune Bio and Dow Jones
Can any of the company-specific risk be diversified away by investing in both INmune Bio and Dow Jones 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 INmune Bio and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INmune Bio and Dow Jones Industrial, you can compare the effects of market volatilities on INmune Bio and Dow Jones 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 INmune Bio with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of INmune Bio and Dow Jones.
Diversification Opportunities for INmune Bio and Dow Jones
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between INmune and Dow is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding INmune Bio and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and INmune Bio 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 INmune Bio are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of INmune Bio i.e., INmune Bio and Dow Jones go up and down completely randomly.
Pair Corralation between INmune Bio and Dow Jones
Given the investment horizon of 90 days INmune Bio is expected to generate 6.81 times more return on investment than Dow Jones. However, INmune Bio is 6.81 times more volatile than Dow Jones Industrial. It trades about 0.02 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of risk. If you would invest 860.00 in INmune Bio on October 25, 2024 and sell it today you would lose (93.00) from holding INmune Bio or give up 10.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
INmune Bio vs. Dow Jones Industrial
Performance |
| Timeline |
INmune Bio and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
INmune Bio
Pair trading matchups for INmune Bio
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with INmune Bio and Dow Jones
The main advantage of trading using opposite INmune Bio and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INmune Bio position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| INmune Bio vs. Anebulo Pharmaceuticals | INmune Bio vs. AN2 Therapeutics | INmune Bio vs. Cue Biopharma | INmune Bio vs. Anixa Biosciences |
| Dow Jones vs. Xiabuxiabu Catering Management | Dow Jones vs. Neogen | Dow Jones vs. Orion Office Reit | Dow Jones vs. Bassett Furniture Industries |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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