Correlation Between In8bio and Anixa Biosciences

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

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

Diversification Opportunities for In8bio and Anixa Biosciences

-0.48

Correlation Coefficient

In8bio  Anixa Biosciences

Very good diversification

The 3 months correlation between In8bio and Anixa is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding In8bio Inc and Anixa Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anixa Biosciences 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 Anixa Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anixa Biosciences has no effect on the direction of In8bio i.e., In8bio and Anixa Biosciences go up and down completely randomly.

Pair Corralation between In8bio and Anixa Biosciences

Given the investment horizon of 90 days In8bio Inc is expected to under-perform the Anixa Biosciences. In addition to that, In8bio is 1.34 times more volatile than Anixa Biosciences. It trades about -0.05 of its total potential returns per unit of risk. Anixa Biosciences is currently generating about 0.1 per unit of volatility. If you would invest  250.00  in Anixa Biosciences on December 28, 2024 and sell it today you would earn a total of  65.00  from holding Anixa Biosciences or generate 26.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

In8bio Inc  vs.  Anixa Biosciences

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.

Anixa Biosciences

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Anixa Biosciences are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady forward indicators, Anixa Biosciences showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with In8bio and Anixa Biosciences

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

The idea behind In8bio Inc and Anixa Biosciences 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.