Correlation Between INmune Bio and Tempest Therapeutics

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

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

Diversification Opportunities for INmune Bio and Tempest Therapeutics

-0.52

Correlation Coefficient

INmune Bio  Tempest Therapeutics

Excellent diversification

The 3 months correlation between INmune and Tempest is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding INmune Bio and Tempest Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tempest Therapeutics and INmune 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 INmune Bio are associated (or correlated) with Tempest Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tempest Therapeutics has no effect on the direction of INmune Bio i.e., INmune Bio and Tempest Therapeutics go up and down completely randomly.

Pair Corralation between INmune Bio and Tempest Therapeutics

Given the investment horizon of 90 days INmune Bio is expected to under-perform the Tempest Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, INmune Bio is 1.27 times less risky than Tempest Therapeutics. The stock trades about -0.14 of its potential returns per unit of risk. The Tempest Therapeutics is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  881.00  in Tempest Therapeutics on August 12, 2025 and sell it today you would earn a total of  71.00  from holding Tempest Therapeutics or generate 8.06% return on investment over 90 days.

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

INmune Bio  vs.  Tempest Therapeutics

INmune Bio

Risk-Adjusted Performance

Weakest

Over the last 90 days INmune Bio has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's primary indicators remain somewhat strong which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Tempest Therapeutics

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Tempest Therapeutics are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Tempest Therapeutics unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with INmune Bio and Tempest Therapeutics

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

The idea behind INmune Bio and Tempest 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.

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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.