Correlation Between In8bio and Compass Therapeutics

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

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

Diversification Opportunities for In8bio and Compass Therapeutics

-0.5

Correlation Coefficient

In8bio  Compass Therapeutics

Very good diversification

The 3 months correlation between In8bio and Compass is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding In8bio Inc and Compass Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compass Therapeutics 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 Compass Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compass Therapeutics has no effect on the direction of In8bio i.e., In8bio and Compass Therapeutics go up and down completely randomly.

Pair Corralation between In8bio and Compass Therapeutics

Given the investment horizon of 90 days In8bio Inc is expected to under-perform the Compass Therapeutics. In addition to that, In8bio is 1.15 times more volatile than Compass Therapeutics. It trades about -0.05 of its total potential returns per unit of risk. Compass Therapeutics is currently generating about 0.19 per unit of volatility. If you would invest  337.00  in Compass Therapeutics on September 3, 2025 and sell it today you would earn a total of  185.00  from holding Compass Therapeutics or generate 54.9% return on investment over 90 days.

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

In8bio Inc  vs.  Compass Therapeutics

In8bio Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days In8bio Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long term up-swing for the company investors.

Compass Therapeutics

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Compass Therapeutics are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Compass Therapeutics showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with In8bio and Compass Therapeutics

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

The idea behind In8bio Inc and Compass Therapeutics 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..