Correlation Between In8bio and Abcam PLC

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

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

Diversification Opportunities for In8bio and Abcam PLC

0.0

Correlation Coefficient

In8bio  Abcam PLC

Pay attention - limited upside

The 3 months correlation between In8bio and Abcam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding In8bio Inc and Abcam PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abcam PLC 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 Abcam PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abcam PLC has no effect on the direction of In8bio i.e., In8bio and Abcam PLC go up and down completely randomly.

Pair Corralation between In8bio and Abcam PLC

If you would invest (100.00) in Abcam PLC on December 28, 2024 and sell it today you would earn a total of  100.00  from holding Abcam PLC or generate -100.0% return on investment over 90 days.

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

In8bio Inc  vs.  Abcam PLC

In8bio Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days In8bio Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Abcam PLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Abcam PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Abcam PLC 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 Abcam PLC

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

The idea behind In8bio Inc and Abcam PLC 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 Commodity Directory module to find actively traded commodities issued by global exchanges.