Correlation Between Mustang Bio and Instil Bio
Can any of the company-specific risk be diversified away by investing in both Mustang Bio and Instil 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 Mustang Bio and Instil Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mustang Bio and Instil Bio, you can compare the effects of market volatilities on Mustang Bio and Instil 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 Mustang Bio with a short position of Instil Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mustang Bio and Instil Bio.
Diversification Opportunities for Mustang Bio and Instil Bio
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mustang and Instil is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Mustang Bio and Instil Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Instil Bio and Mustang 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 Mustang Bio are associated (or correlated) with Instil Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Instil Bio has no effect on the direction of Mustang Bio i.e., Mustang Bio and Instil Bio go up and down completely randomly.
Pair Corralation between Mustang Bio and Instil Bio
Given the investment horizon of 90 days Mustang Bio is expected to generate 5.73 times less return on investment than Instil Bio. In addition to that, Mustang Bio is 3.28 times more volatile than Instil Bio. It trades about 0.0 of its total potential returns per unit of risk. Instil Bio is currently generating about 0.05 per unit of volatility. If you would invest 1,340 in Instil Bio on August 31, 2024 and sell it today you would earn a total of 1,351 from holding Instil Bio or generate 100.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Mustang Bio vs. Instil Bio
Performance |
| Timeline |
| Mustang Bio |
| Instil Bio |
Mustang Bio and Instil Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mustang Bio and Instil Bio
The main advantage of trading using opposite Mustang Bio and Instil Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mustang Bio position performs unexpectedly, Instil 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 Instil Bio will offset losses from the drop in Instil Bio's long position.| Mustang Bio vs. Checkpoint Therapeutics | Mustang Bio vs. Reviva Pharmaceuticals Holdings | Mustang Bio vs. Fortress Biotech Pref | Mustang Bio vs. Kodiak Sciences |
| Instil Bio vs. Assembly Biosciences | Instil Bio vs. Nuvation Bio | Instil Bio vs. Achilles Therapeutics PLC | Instil Bio vs. NextCure |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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