Correlation Between Dyadic International and Inhibrx

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

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

Diversification Opportunities for Dyadic International and Inhibrx

-0.39

Correlation Coefficient

Dyadic International  Inhibrx

Very good diversification

The 3 months correlation between Dyadic and Inhibrx is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Dyadic International and Inhibrx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inhibrx and Dyadic International 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 Dyadic International 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 Dyadic International i.e., Dyadic International and Inhibrx go up and down completely randomly.

Pair Corralation between Dyadic International and Inhibrx

Given the investment horizon of 90 days Dyadic International is expected to generate 3.52 times more return on investment than Inhibrx. However, Dyadic International is 3.52 times more volatile than Inhibrx. It trades about 0.06 of its potential returns per unit of risk. Inhibrx is currently generating about 0.02 per unit of risk. If you would invest  165.00  in Dyadic International on October 10, 2024 and sell it today you would earn a total of  8.00  from holding Dyadic International or generate 4.85% return on investment over 90 days.

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

Dyadic International  vs.  Inhibrx

Dyadic International

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Dyadic International are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly conflicting basic indicators, Dyadic International demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Inhibrx

Risk-Adjusted Performance

0 of 100

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 Dyadic International and Inhibrx

The main advantage of trading using opposite Dyadic International and Inhibrx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dyadic International 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 Dyadic International 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.