Correlation Between Aeries Technology and Inhibrx

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

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

Diversification Opportunities for Aeries Technology and Inhibrx

0.53

Correlation Coefficient

Aeries Technology  Inhibrx

Very weak diversification

The 3 months correlation between Aeries and Inhibrx is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Aeries Technology and Inhibrx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inhibrx and Aeries Technology 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 Aeries Technology are associated (or correlated) with Inhibrx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inhibrx has no effect on the direction of Aeries Technology i.e., Aeries Technology and Inhibrx go up and down completely randomly.

Pair Corralation between Aeries Technology and Inhibrx

Given the investment horizon of 90 days Aeries Technology is expected to generate 3.27 times more return on investment than Inhibrx. However, Aeries Technology is 3.27 times more volatile than Inhibrx. It trades about 0.03 of its potential returns per unit of risk. Inhibrx is currently generating about 0.0 per unit of risk. If you would invest  77.00  in Aeries Technology on December 21, 2024 and sell it today you would lose (11.00) from holding Aeries Technology or give up 14.29% of portfolio value over 90 days.

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

Aeries Technology  vs.  Inhibrx

Aeries Technology

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Aeries Technology are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Aeries Technology unveiled solid returns over the last few months and may actually be approaching a breakup point.

Inhibrx

Risk-Adjusted Performance

Very Weak

Over the last 90 days Inhibrx has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong fundamental drivers, Inhibrx is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Aeries Technology and Inhibrx

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

The idea behind Aeries Technology and Inhibrx 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.