Correlation Between Zura Bio and INmune Bio
Can any of the company-specific risk be diversified away by investing in both Zura Bio and INmune 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 Zura Bio and INmune Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zura Bio Limited and INmune Bio, you can compare the effects of market volatilities on Zura Bio and INmune 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 Zura Bio with a short position of INmune Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zura Bio and INmune Bio.
Diversification Opportunities for Zura Bio and INmune Bio
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zura and INmune is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Zura Bio Limited and INmune Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INmune Bio and Zura 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 Zura Bio Limited are associated (or correlated) with INmune Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INmune Bio has no effect on the direction of Zura Bio i.e., Zura Bio and INmune Bio go up and down completely randomly.
Pair Corralation between Zura Bio and INmune Bio
Given the investment horizon of 90 days Zura Bio Limited is expected to under-perform the INmune Bio. In addition to that, Zura Bio is 1.71 times more volatile than INmune Bio. It trades about -0.27 of its total potential returns per unit of risk. INmune Bio is currently generating about -0.27 per unit of volatility. If you would invest 617.00 in INmune Bio on August 29, 2024 and sell it today you would lose (129.00) from holding INmune Bio or give up 20.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zura Bio Limited vs. INmune Bio
Performance |
| Timeline |
| Zura Bio Limited |
| INmune Bio |
Zura Bio and INmune Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zura Bio and INmune Bio
The main advantage of trading using opposite Zura Bio and INmune Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zura Bio position performs unexpectedly, INmune 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 INmune Bio will offset losses from the drop in INmune Bio's long position.| Zura Bio vs. Eliem Therapeutics | Zura Bio vs. Scpharmaceuticals | Zura Bio vs. Milestone Pharmaceuticals | Zura Bio vs. Seres Therapeutics |
| INmune Bio vs. Tff Pharmaceuticals | INmune Bio vs. Anebulo Pharmaceuticals | INmune Bio vs. AN2 Therapeutics | INmune Bio vs. Cue Biopharma |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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