Correlation Between In8bio and OmniAb
Can any of the company-specific risk be diversified away by investing in both In8bio and OmniAb 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 OmniAb into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between In8bio Inc and OmniAb Inc, you can compare the effects of market volatilities on In8bio and OmniAb 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 OmniAb. Check out your portfolio center. Please also check ongoing floating volatility patterns of In8bio and OmniAb.
Diversification Opportunities for In8bio and OmniAb
Poor diversification
The 3 months correlation between In8bio and OmniAb is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding In8bio Inc and OmniAb Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OmniAb Inc 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 OmniAb. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OmniAb Inc has no effect on the direction of In8bio i.e., In8bio and OmniAb go up and down completely randomly.
Pair Corralation between In8bio and OmniAb
Given the investment horizon of 90 days In8bio Inc is expected to under-perform the OmniAb. But the stock apears to be less risky and, when comparing its historical volatility, In8bio Inc is 1.01 times less risky than OmniAb. The stock trades about -0.14 of its potential returns per unit of risk. The OmniAb Inc is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 201.00 in OmniAb Inc on August 17, 2025 and sell it today you would lose (45.00) from holding OmniAb Inc or give up 22.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
In8bio Inc vs. OmniAb Inc
Performance |
| Timeline |
| In8bio Inc |
| OmniAb Inc |
In8bio and OmniAb Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with In8bio and OmniAb
The main advantage of trading using opposite In8bio and OmniAb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if In8bio position performs unexpectedly, OmniAb 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 OmniAb will offset losses from the drop in OmniAb's long position.The idea behind In8bio Inc and OmniAb Inc 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.| OmniAb vs. Codexis | OmniAb vs. Sangamo Therapeutics | OmniAb vs. Invivyd | OmniAb vs. Insight Molecular Diagnostics |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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