Correlation Between INmune Bio and TechnoPro Holdings

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Can any of the company-specific risk be diversified away by investing in both INmune Bio and TechnoPro Holdings 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 INmune Bio and TechnoPro Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INmune Bio and TechnoPro Holdings, you can compare the effects of market volatilities on INmune Bio and TechnoPro Holdings 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 INmune Bio with a short position of TechnoPro Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of INmune Bio and TechnoPro Holdings.

Diversification Opportunities for INmune Bio and TechnoPro Holdings

0.15
  Correlation Coefficient

Average diversification

The 3 months correlation between INmune and TechnoPro is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding INmune Bio and TechnoPro Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TechnoPro Holdings and INmune 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 INmune Bio are associated (or correlated) with TechnoPro Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TechnoPro Holdings has no effect on the direction of INmune Bio i.e., INmune Bio and TechnoPro Holdings go up and down completely randomly.

Pair Corralation between INmune Bio and TechnoPro Holdings

Given the investment horizon of 90 days INmune Bio is expected to generate 0.07 times more return on investment than TechnoPro Holdings. However, INmune Bio is 13.53 times less risky than TechnoPro Holdings. It trades about 0.02 of its potential returns per unit of risk. TechnoPro Holdings is currently generating about -0.08 per unit of risk. If you would invest  917.00  in INmune Bio on September 3, 2022 and sell it today you would lose (227.50)  from holding INmune Bio or give up 24.81% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy99.6%
ValuesDaily Returns

INmune Bio  vs.  TechnoPro Holdings

 Performance (%) 
       Timeline  
INmune Bio 
INmune Performance
0 of 100
Over the last 90 days INmune Bio has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong primary indicators, INmune Bio is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

INmune Price Channel

TechnoPro Holdings 
TechnoPro Performance
7 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in TechnoPro Holdings are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, TechnoPro Holdings exhibited solid returns over the last few months and may actually be approaching a breakup point.

TechnoPro Price Channel

INmune Bio and TechnoPro Holdings Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with INmune Bio and TechnoPro Holdings

The main advantage of trading using opposite INmune Bio and TechnoPro Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INmune Bio position performs unexpectedly, TechnoPro Holdings 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 TechnoPro Holdings will offset losses from the drop in TechnoPro Holdings' long position.
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The idea behind INmune Bio and TechnoPro Holdings 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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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 Transaction History module to view history of all your transactions and understand their impact on performance.

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