Correlation Between Anixa Biosciences and Ibio
Can any of the company-specific risk be diversified away by investing in both Anixa Biosciences and Ibio 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 Anixa Biosciences and Ibio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anixa Biosciences and Ibio Inc, you can compare the effects of market volatilities on Anixa Biosciences and Ibio 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 Anixa Biosciences with a short position of Ibio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anixa Biosciences and Ibio.
Diversification Opportunities for Anixa Biosciences and Ibio
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Anixa and Ibio is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Anixa Biosciences and Ibio Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ibio Inc and Anixa Biosciences 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 Anixa Biosciences are associated (or correlated) with Ibio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ibio Inc has no effect on the direction of Anixa Biosciences i.e., Anixa Biosciences and Ibio go up and down completely randomly.
Pair Corralation between Anixa Biosciences and Ibio
Given the investment horizon of 90 days Anixa Biosciences is expected to under-perform the Ibio. But the stock apears to be less risky and, when comparing its historical volatility, Anixa Biosciences is 1.31 times less risky than Ibio. The stock trades about -0.06 of its potential returns per unit of risk. The Ibio Inc is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 182.00 in Ibio Inc on September 25, 2024 and sell it today you would earn a total of 54.00 from holding Ibio Inc or generate 29.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Anixa Biosciences vs. Ibio Inc
Performance |
Timeline |
Anixa Biosciences |
Ibio Inc |
Anixa Biosciences and Ibio Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Anixa Biosciences and Ibio
The main advantage of trading using opposite Anixa Biosciences and Ibio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anixa Biosciences position performs unexpectedly, Ibio 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 Ibio will offset losses from the drop in Ibio's long position.Anixa Biosciences vs. Fate Therapeutics | Anixa Biosciences vs. Caribou Biosciences | Anixa Biosciences vs. Karyopharm Therapeutics | Anixa Biosciences vs. X4 Pharmaceuticals |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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