Correlation Between Microbix Biosystems and Immunitybio

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

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

Diversification Opportunities for Microbix Biosystems and Immunitybio

0.36

Correlation Coefficient

Microbix Biosystems  Immunitybio

Weak diversification

The 3 months correlation between Microbix and Immunitybio is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Microbix Biosystems and Immunitybio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immunitybio and Microbix Biosystems 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 Microbix Biosystems are associated (or correlated) with Immunitybio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immunitybio has no effect on the direction of Microbix Biosystems i.e., Microbix Biosystems and Immunitybio go up and down completely randomly.

Pair Corralation between Microbix Biosystems and Immunitybio

Assuming the 90 days horizon Microbix Biosystems is expected to under-perform the Immunitybio. But the otc stock apears to be less risky and, when comparing its historical volatility, Microbix Biosystems is 1.2 times less risky than Immunitybio. The otc stock trades about -0.06 of its potential returns per unit of risk. The Immunitybio is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  271.00  in Immunitybio on July 22, 2025 and sell it today you would lose (31.00) from holding Immunitybio or give up 11.44% of portfolio value over 90 days.

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

Microbix Biosystems  vs.  Immunitybio

Microbix Biosystems

Risk-Adjusted Performance

Weakest

Over the last 90 days Microbix Biosystems has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's fundamental drivers remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Immunitybio

Risk-Adjusted Performance

Weakest

Over the last 90 days Immunitybio has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Microbix Biosystems and Immunitybio

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

The idea behind Microbix Biosystems and Immunitybio 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.