Correlation Between In8bio and Apexigen

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

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

Diversification Opportunities for In8bio and Apexigen

0.17

Correlation Coefficient

In8bio  Apexigen

Average diversification

The 3 months correlation between In8bio and Apexigen is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding In8bio Inc and Apexigen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apexigen and In8bio 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 In8bio Inc are associated (or correlated) with Apexigen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apexigen has no effect on the direction of In8bio i.e., In8bio and Apexigen go up and down completely randomly.

Pair Corralation between In8bio and Apexigen

If you would invest  30.00  in In8bio Inc on September 12, 2024 and sell it today you would earn a total of  2.11  from holding In8bio Inc or generate 7.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

In8bio Inc  vs.  Apexigen

In8bio Inc

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in In8bio Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat inconsistent basic indicators, In8bio sustained solid returns over the last few months and may actually be approaching a breakup point.

Apexigen

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with In8bio and Apexigen

The main advantage of trading using opposite In8bio and Apexigen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if In8bio position performs unexpectedly, Apexigen 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 Apexigen will offset losses from the drop in Apexigen's long position.

The idea behind In8bio Inc and Apexigen 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.