Correlation Between In8bio and Landos Biopharma

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

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

Diversification Opportunities for In8bio and Landos Biopharma

0.23

Correlation Coefficient

In8bio  Landos Biopharma

Modest diversification

The 3 months correlation between In8bio and Landos is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding In8bio Inc and Landos Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Landos Biopharma 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 Landos Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Landos Biopharma has no effect on the direction of In8bio i.e., In8bio and Landos Biopharma go up and down completely randomly.

Pair Corralation between In8bio and Landos Biopharma

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	Very Weak
Accuracy	1.56%
Values	Daily Returns

In8bio Inc  vs.  Landos Biopharma

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.

Landos Biopharma

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Landos Biopharma has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental drivers, Landos Biopharma is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with In8bio and Landos Biopharma

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

The idea behind In8bio Inc and Landos Biopharma 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.