Correlation Between Akeso, and Inhibrx

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

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

Diversification Opportunities for Akeso, and Inhibrx

-0.02

Correlation Coefficient

Akeso,  Inhibrx

Good diversification

The 3 months correlation between Akeso, and Inhibrx is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Akeso, Inc and Inhibrx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inhibrx and Akeso, 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 Akeso, Inc 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 Akeso, i.e., Akeso, and Inhibrx go up and down completely randomly.

Pair Corralation between Akeso, and Inhibrx

Assuming the 90 days horizon Akeso, Inc is expected to generate 2.06 times more return on investment than Inhibrx. However, Akeso, is 2.06 times more volatile than Inhibrx. It trades about 0.11 of its potential returns per unit of risk. Inhibrx is currently generating about 0.01 per unit of risk. If you would invest  620.00  in Akeso, Inc on September 12, 2024 and sell it today you would earn a total of  220.00  from holding Akeso, Inc or generate 35.48% return on investment over 90 days.

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

Akeso, Inc  vs.  Inhibrx

Akeso, Inc

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Akeso, Inc are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Akeso, reported solid returns over the last few months and may actually be approaching a breakup point.

Inhibrx

Risk-Adjusted Performance

0 of 100

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 Akeso, and Inhibrx

The main advantage of trading using opposite Akeso, and Inhibrx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akeso, 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 Akeso, Inc 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.

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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.