Correlation Between Instil Bio and Fortress Biotech
Can any of the company-specific risk be diversified away by investing in both Instil Bio and Fortress Biotech 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 Instil Bio and Fortress Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Instil Bio and Fortress Biotech, you can compare the effects of market volatilities on Instil Bio and Fortress Biotech 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 Instil Bio with a short position of Fortress Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Instil Bio and Fortress Biotech.
Diversification Opportunities for Instil Bio and Fortress Biotech
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Instil and Fortress is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Instil Bio and Fortress Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortress Biotech and Instil 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 Instil Bio are associated (or correlated) with Fortress Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortress Biotech has no effect on the direction of Instil Bio i.e., Instil Bio and Fortress Biotech go up and down completely randomly.
Pair Corralation between Instil Bio and Fortress Biotech
Considering the 90-day investment horizon Instil Bio is expected to under-perform the Fortress Biotech. In addition to that, Instil Bio is 1.85 times more volatile than Fortress Biotech. It trades about -0.23 of its total potential returns per unit of risk. Fortress Biotech is currently generating about 0.15 per unit of volatility. If you would invest 145.00 in Fortress Biotech on August 31, 2024 and sell it today you would earn a total of 38.00 from holding Fortress Biotech or generate 26.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.78% |
| Values | Daily Returns |
Instil Bio vs. Fortress Biotech
Performance |
| Timeline |
| Instil Bio |
| Fortress Biotech |
Instil Bio and Fortress Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Instil Bio and Fortress Biotech
The main advantage of trading using opposite Instil Bio and Fortress Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Instil Bio position performs unexpectedly, Fortress Biotech 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 Fortress Biotech will offset losses from the drop in Fortress Biotech's long position.| Instil Bio vs. Assembly Biosciences | Instil Bio vs. Nuvation Bio | Instil Bio vs. Achilles Therapeutics PLC | Instil Bio vs. NextCure |
| Fortress Biotech vs. Cue Biopharma | Fortress Biotech vs. Eliem Therapeutics | Fortress Biotech vs. Inhibrx | Fortress Biotech vs. Molecular Partners AG |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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