By analyzing existing forward indicators between Ibio and Equillium, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Equillium with a short position in Ibio. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Ibio has an asset utilization ratio of 4.52 percent. This suggests that the company is making $0.0452 for each dollar of assets. An increasing asset utilization means that Ibio Inc is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Ibio or Onconova is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is Ibio's Liquidity
Ibio
financial leverage refers to using borrowed capital as a funding source to finance Ibio Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Ibio financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Ibio's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Ibio's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Ibio's total debt and its cash.
Correlation Between Ibio and Onconova Therapeutics
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Ibio together with similar or unrelated positions with a negative correlation. For example, you can also add Onconova Therapeutics to your portfolio. If Onconova Therapeutics is not perfectly correlated to Ibio it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Ibio, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Ibio and Onconova Therapeutics in your portfolio? Please note if you are using this as a pair-trade strategy between Ibio and Onconova Therapeutics, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between IBIO and ONTX for more information.
Breaking down the case for Ibio
Cash and Equivalents Breakdown
Let me take a closer look at Ibio cash and equivalents. In accordance with the recently published financial statements, Ibio Inc has 107.65
M in Cash and Equivalents. This is 86.89% lower than that of the Healthcare sector and 75.92% lower than that of the
Biotechnology industry. The cash and equivalents for all United States stocks is 96.02% higher than that of the firm. As for Equillium we see cash and equivalents of 104.08
M, which is 76.72% lower than that of the Biotechnology
| Ibio | 107.65 Million |
| Sector | 447.12 Million |
| Equillium | 104.08 Million |
Ibio has 83 percent chance to stay above $1.17 in 2 months
Latest value at risk is at -6.25. Ibio Inc exhibits very low volatility with skewness of 0.18 and kurtosis of 0.42. However, we advise investors to further study Ibio Inc technical indicators to make sure all market info is available and is reliable. Ibio Inc is a potential penny stock. Although Ibio may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Ibio Inc. We encourage investors to look for the signals such us email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Ibio instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of an artificial hype usually unable to maintain its increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.
Our Conclusion on Ibio
Whereas many of the other players in the biotechnology industry are either recovering or due for a correction, Ibio may not be as strong as the others in terms of longer-term growth potentials. With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither take over new shares of Ibio nor short your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Ibio.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Ibio Inc. Please refer to our
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