Correlation Between Instil Bio and Generation Bio
Can any of the company-specific risk be diversified away by investing in both Instil Bio and Generation 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 Instil Bio and Generation Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Instil Bio and Generation Bio Co, you can compare the effects of market volatilities on Instil Bio and Generation 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 Instil Bio with a short position of Generation Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Instil Bio and Generation Bio.
Diversification Opportunities for Instil Bio and Generation Bio
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Instil and Generation is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Instil Bio and Generation Bio Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Generation Bio 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 Generation Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Generation Bio has no effect on the direction of Instil Bio i.e., Instil Bio and Generation Bio go up and down completely randomly.
Pair Corralation between Instil Bio and Generation Bio
Considering the 90-day investment horizon Instil Bio is expected to generate 1.56 times more return on investment than Generation Bio. However, Instil Bio is 1.56 times more volatile than Generation Bio Co. It trades about 0.02 of its potential returns per unit of risk. Generation Bio Co is currently generating about -0.31 per unit of risk. If you would invest 2,763 in Instil Bio on September 3, 2024 and sell it today you would lose (72.00) from holding Instil Bio or give up 2.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Instil Bio vs. Generation Bio Co
Performance |
| Timeline |
| Instil Bio |
| Generation Bio |
Instil Bio and Generation Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Instil Bio and Generation Bio
The main advantage of trading using opposite Instil Bio and Generation Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Instil Bio position performs unexpectedly, Generation 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 Generation Bio will offset losses from the drop in Generation Bio's long position.| Instil Bio vs. DiaMedica Therapeutics | Instil Bio vs. Lyra Therapeutics | Instil Bio vs. Centessa Pharmaceuticals PLC |
| Generation Bio vs. Monte Rosa Therapeutics | Generation Bio vs. Nkarta Inc | Generation Bio vs. Lyell Immunopharma | Generation Bio vs. Sana Biotechnology |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Positions Ratings 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 | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |