Correlation Between Gilead Sciences and In8bio

Can any of the company-specific risk be diversified away by investing in both Gilead Sciences and In8bio 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 Gilead Sciences and In8bio into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Gilead Sciences and In8bio Inc, you can compare the effects of market volatilities on Gilead Sciences and In8bio 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 Gilead Sciences with a short position of In8bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gilead Sciences and In8bio.

Diversification Opportunities for Gilead Sciences and In8bio

-0.72

Correlation Coefficient

Gilead Sciences  In8bio

Pay attention - limited upside

The 3 months correlation between Gilead and In8bio is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Gilead Sciences and In8bio Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on In8bio Inc and Gilead Sciences 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 Gilead Sciences are associated (or correlated) with In8bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of In8bio Inc has no effect on the direction of Gilead Sciences i.e., Gilead Sciences and In8bio go up and down completely randomly.

Pair Corralation between Gilead Sciences and In8bio

Given the investment horizon of 90 days Gilead Sciences is expected to generate 0.32 times more return on investment than In8bio. However, Gilead Sciences is 3.12 times less risky than In8bio. It trades about 0.14 of its potential returns per unit of risk. In8bio Inc is currently generating about -0.2 per unit of risk. If you would invest  9,719  in Gilead Sciences on May 6, 2025 and sell it today you would earn a total of  1,599  from holding Gilead Sciences or generate 16.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Gilead Sciences  vs.  In8bio Inc

Gilead Sciences

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Gilead Sciences are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak essential indicators, Gilead Sciences exhibited solid returns over the last few months and may actually be approaching a breakup point.

In8bio Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days In8bio Inc 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 basic indicators remain somewhat strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Gilead Sciences and In8bio

The main advantage of trading using opposite Gilead Sciences and In8bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gilead Sciences position performs unexpectedly, In8bio 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 In8bio will offset losses from the drop in In8bio's long position.

The idea behind Gilead Sciences and In8bio 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.

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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.