Correlation Between Ascletis Pharma and Inhibrx

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

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

Diversification Opportunities for Ascletis Pharma and Inhibrx

-0.47

Correlation Coefficient

Ascletis Pharma  Inhibrx

Very good diversification

The 3 months correlation between Ascletis and Inhibrx is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Ascletis Pharma and Inhibrx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inhibrx and Ascletis Pharma 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 Ascletis Pharma 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 Ascletis Pharma i.e., Ascletis Pharma and Inhibrx go up and down completely randomly.

Pair Corralation between Ascletis Pharma and Inhibrx

Assuming the 90 days horizon Ascletis Pharma is expected to generate 6.56 times more return on investment than Inhibrx. However, Ascletis Pharma is 6.56 times more volatile than Inhibrx. It trades about 0.16 of its potential returns per unit of risk. Inhibrx is currently generating about -0.05 per unit of risk. If you would invest  18.00  in Ascletis Pharma on December 2, 2024 and sell it today you would earn a total of  66.00  from holding Ascletis Pharma or generate 366.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	93.85%
Values	Daily Returns

Ascletis Pharma  vs.  Inhibrx

Ascletis Pharma

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ascletis Pharma are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile essential indicators, Ascletis Pharma reported 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 latest weak performance, the Stock's fundamental drivers 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 Ascletis Pharma and Inhibrx

The main advantage of trading using opposite Ascletis Pharma and Inhibrx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascletis Pharma 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 Ascletis Pharma 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.