Correlation Between Instil Bio and Altimmune

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

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

Diversification Opportunities for Instil Bio and Altimmune

-0.62

Correlation Coefficient

Instil Bio  Altimmune

Excellent diversification

The 3 months correlation between Instil and Altimmune is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Instil Bio and Altimmune in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altimmune and Instil Bio 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 Instil Bio are associated (or correlated) with Altimmune. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altimmune has no effect on the direction of Instil Bio i.e., Instil Bio and Altimmune go up and down completely randomly.

Pair Corralation between Instil Bio and Altimmune

Considering the 90-day investment horizon Instil Bio is expected to generate 1.39 times more return on investment than Altimmune. However, Instil Bio is 1.39 times more volatile than Altimmune. It trades about -0.2 of its potential returns per unit of risk. Altimmune is currently generating about -0.35 per unit of risk. If you would invest  2,840  in Instil Bio on October 5, 2024 and sell it today you would lose (678.00) from holding Instil Bio or give up 23.87% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Instil Bio  vs.  Altimmune

Instil Bio

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Instil Bio has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's forward indicators remain quite persistent which may send shares a bit higher in February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Altimmune

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Altimmune are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent essential indicators, Altimmune unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Instil Bio and Altimmune

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

The idea behind Instil Bio and Altimmune 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.