Correlation Between Immunome and In8bio

Can any of the company-specific risk be diversified away by investing in both Immunome 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 Immunome and In8bio into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Immunome and In8bio Inc, you can compare the effects of market volatilities on Immunome 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 Immunome with a short position of In8bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immunome and In8bio.

Diversification Opportunities for Immunome and In8bio

0.26

Correlation Coefficient

Immunome  In8bio

Modest diversification

The 3 months correlation between Immunome and In8bio is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Immunome and In8bio Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on In8bio Inc and Immunome 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 Immunome 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 Immunome i.e., Immunome and In8bio go up and down completely randomly.

Pair Corralation between Immunome and In8bio

Given the investment horizon of 90 days Immunome is expected to generate 0.97 times more return on investment than In8bio. However, Immunome is 1.03 times less risky than In8bio. It trades about 0.15 of its potential returns per unit of risk. In8bio Inc is currently generating about 0.08 per unit of risk. If you would invest  1,147  in Immunome on September 1, 2024 and sell it today you would earn a total of  208.00  from holding Immunome or generate 18.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Immunome  vs.  In8bio Inc

Immunome

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Immunome has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Immunome is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

In8bio Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days In8bio Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Immunome and In8bio

The main advantage of trading using opposite Immunome and In8bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Immunome 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.

The idea behind Immunome and In8bio Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.