Correlation Between Evofem Biosciences and IBio, Common

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

By analyzing existing cross correlation between Evofem Biosciences and iBio, Common Stock, you can compare the effects of market volatilities on Evofem Biosciences and IBio, Common 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 Evofem Biosciences with a short position of IBio, Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evofem Biosciences and IBio, Common.

Diversification Opportunities for Evofem Biosciences and IBio, Common

0.0

Correlation Coefficient

Evofem Biosciences  IBio, Common

Pay attention - limited upside

The 3 months correlation between Evofem and IBio, is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Evofem Biosciences and iBio, Common Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iBio, Common Stock and Evofem 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 Evofem Biosciences are associated (or correlated) with IBio, Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iBio, Common Stock has no effect on the direction of Evofem Biosciences i.e., Evofem Biosciences and IBio, Common go up and down completely randomly.

Pair Corralation between Evofem Biosciences and IBio, Common

If you would invest  238.00  in iBio, Common Stock on December 28, 2024 and sell it today you would earn a total of  174.00  from holding iBio, Common Stock or generate 73.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Evofem Biosciences  vs.  iBio, Common Stock

Evofem Biosciences

Risk-Adjusted Performance

Very Weak

Over the last 90 days Evofem Biosciences has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, Evofem Biosciences is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

iBio, Common Stock

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in iBio, Common Stock are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very weak forward indicators, IBio, Common displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Evofem Biosciences and IBio, Common

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

The idea behind Evofem Biosciences and iBio, Common Stock 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.