Correlation Between In8bio and LIFE Old

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

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

Diversification Opportunities for In8bio and LIFE Old

0.0

Correlation Coefficient

In8bio  LIFE Old

Pay attention - limited upside

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

Pair Corralation between In8bio and LIFE Old

If you would invest  25.00  in In8bio Inc on December 1, 2024 and sell it today you would earn a total of  2.00  from holding In8bio Inc or generate 8.0% return on investment over 90 days.

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

In8bio Inc  vs.  LIFE Old

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 unfluctuating 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.

LIFE Old

Risk-Adjusted Performance

Very Weak

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

Pair Trading with In8bio and LIFE Old

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

The idea behind In8bio Inc and LIFE 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.

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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.