Correlation Between Cambium Bio and Instil Bio

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

Diversification Opportunities for Cambium Bio and Instil Bio

-0.63
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Cambium and Instil is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Cambium Bio and Instil Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Instil Bio and Cambium 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 Cambium Bio are associated (or correlated) with Instil Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Instil Bio has no effect on the direction of Cambium Bio i.e., Cambium Bio and Instil Bio go up and down completely randomly.

Pair Corralation between Cambium Bio and Instil Bio

Assuming the 90 days trading horizon Cambium Bio is expected to generate 0.79 times more return on investment than Instil Bio. However, Cambium Bio is 1.26 times less risky than Instil Bio. It trades about 0.02 of its potential returns per unit of risk. Instil Bio is currently generating about -0.29 per unit of risk. If you would invest  50.00  in Cambium Bio on August 13, 2025 and sell it today you would earn a total of  0.00  from holding Cambium Bio or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy95.45%
ValuesDaily Returns

Cambium Bio  vs.  Instil Bio

 Performance 
       Timeline  
Cambium Bio 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Cambium Bio are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain fundamental drivers, Cambium Bio unveiled solid returns over the last few months and may actually be approaching a breakup point.
Instil Bio 

Risk-Adjusted Performance

Weakest

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

Cambium Bio and Instil Bio Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Cambium Bio and Instil Bio

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

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