Correlation Between Ibio and ONTX Old

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

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

Diversification Opportunities for Ibio and ONTX Old

0.0

Correlation Coefficient

Ibio  ONTX Old

Pay attention - limited upside

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

Pair Corralation between Ibio and ONTX Old

If you would invest  219.00  in Ibio Inc on November 20, 2024 and sell it today you would earn a total of  124.00  from holding Ibio Inc or generate 56.62% return on investment over 90 days.

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

Ibio Inc  vs.  ONTX Old

Ibio Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ibio Inc are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very weak forward indicators, Ibio displayed solid returns over the last few months and may actually be approaching a breakup point.

ONTX Old

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Ibio and ONTX Old

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

The idea behind Ibio Inc and ONTX Old 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.

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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.