Correlation Between In8bio and AN2 Therapeutics
Can any of the company-specific risk be diversified away by investing in both In8bio and AN2 Therapeutics 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 AN2 Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between In8bio Inc and AN2 Therapeutics, you can compare the effects of market volatilities on In8bio and AN2 Therapeutics 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 AN2 Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of In8bio and AN2 Therapeutics.
Diversification Opportunities for In8bio and AN2 Therapeutics
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between In8bio and AN2 is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding In8bio Inc and AN2 Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AN2 Therapeutics 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 AN2 Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AN2 Therapeutics has no effect on the direction of In8bio i.e., In8bio and AN2 Therapeutics go up and down completely randomly.
Pair Corralation between In8bio and AN2 Therapeutics
Given the investment horizon of 90 days In8bio Inc is expected to generate 2.24 times more return on investment than AN2 Therapeutics. However, In8bio is 2.24 times more volatile than AN2 Therapeutics. It trades about -0.04 of its potential returns per unit of risk. AN2 Therapeutics is currently generating about -0.16 per unit of risk. If you would invest 37.00 in In8bio Inc on December 1, 2024 and sell it today you would lose (10.00) from holding In8bio Inc or give up 27.03% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
In8bio Inc vs. AN2 Therapeutics
Performance |
Timeline |
In8bio Inc |
AN2 Therapeutics |
In8bio and AN2 Therapeutics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with In8bio and AN2 Therapeutics
The main advantage of trading using opposite In8bio and AN2 Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if In8bio position performs unexpectedly, AN2 Therapeutics 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 AN2 Therapeutics will offset losses from the drop in AN2 Therapeutics' long position.In8bio vs. Beam Therapeutics | In8bio vs. Editas Medicine | In8bio vs. Caribou Biosciences | In8bio vs. Verve Therapeutics |
AN2 Therapeutics vs. Aerovate Therapeutics | AN2 Therapeutics vs. Adagene | AN2 Therapeutics vs. Acrivon Therapeutics, Common | AN2 Therapeutics vs. Rezolute |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |