Correlation Between Magenta Therapeutics and In8bio
Can any of the company-specific risk be diversified away by investing in both Magenta Therapeutics and In8bio 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 Magenta Therapeutics and In8bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magenta Therapeutics and In8bio Inc, you can compare the effects of market volatilities on Magenta Therapeutics and In8bio 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 Magenta Therapeutics with a short position of In8bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magenta Therapeutics and In8bio.
Diversification Opportunities for Magenta Therapeutics and In8bio
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Magenta and In8bio is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Magenta Therapeutics and In8bio Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on In8bio Inc and Magenta Therapeutics 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 Magenta Therapeutics are associated (or correlated) with In8bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of In8bio Inc has no effect on the direction of Magenta Therapeutics i.e., Magenta Therapeutics and In8bio go up and down completely randomly.
Pair Corralation between Magenta Therapeutics and In8bio
If you would invest 24.00 in In8bio Inc on October 23, 2024 and sell it today you would earn a total of 6.00 from holding In8bio Inc or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
Magenta Therapeutics vs. In8bio Inc
Performance |
| Timeline |
| Magenta Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| In8bio Inc |
Magenta Therapeutics and In8bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magenta Therapeutics and In8bio
The main advantage of trading using opposite Magenta Therapeutics and In8bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magenta Therapeutics position performs unexpectedly, In8bio 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 In8bio will offset losses from the drop in In8bio's long position.| 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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