Correlation Between Instil Bio and GRPH Old

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

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

Diversification Opportunities for Instil Bio and GRPH Old

0.61

Correlation Coefficient

Instil Bio  GRPH Old

Poor diversification

The 3 months correlation between Instil and GRPH is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Instil Bio and GRPH Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRPH Old 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 GRPH Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRPH Old has no effect on the direction of Instil Bio i.e., Instil Bio and GRPH Old go up and down completely randomly.

Pair Corralation between Instil Bio and GRPH Old

If you would invest  267.00  in GRPH Old on October 10, 2024 and sell it today you would earn a total of  0.00  from holding GRPH Old or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	5.0%
Values	Daily Returns

Instil Bio  vs.  GRPH Old

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.

GRPH Old

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GRPH Old has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, GRPH Old is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Instil Bio and GRPH Old

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

The idea behind Instil Bio and GRPH 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.

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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.