Correlation Between Panacea Biotec and Instil Bio

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

Diversification Opportunities for Panacea Biotec and Instil Bio

-0.36
  Correlation Coefficient

Very good diversification

The 3 months correlation between Panacea and Instil is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Panacea Biotec Limited and Instil Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Instil Bio and Panacea Biotec 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 Panacea Biotec Limited 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 Panacea Biotec i.e., Panacea Biotec and Instil Bio go up and down completely randomly.

Pair Corralation between Panacea Biotec and Instil Bio

Assuming the 90 days trading horizon Panacea Biotec Limited is expected to generate 0.43 times more return on investment than Instil Bio. However, Panacea Biotec Limited is 2.34 times less risky than Instil Bio. It trades about -0.03 of its potential returns per unit of risk. Instil Bio is currently generating about -0.14 per unit of risk. If you would invest  43,065  in Panacea Biotec Limited on August 13, 2025 and sell it today you would lose (2,480) from holding Panacea Biotec Limited or give up 5.76% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy98.41%
ValuesDaily Returns

Panacea Biotec Limited  vs.  Instil Bio

 Performance 
       Timeline  
Panacea Biotec 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Panacea Biotec Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Panacea Biotec is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.
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.

Panacea Biotec and Instil Bio Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Panacea Biotec and Instil Bio

The main advantage of trading using opposite Panacea Biotec and Instil Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panacea Biotec 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 Panacea Biotec Limited 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.

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