Correlation Between Inhibrx and Accelerate Acquisition

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

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

Diversification Opportunities for Inhibrx and Accelerate Acquisition

0.0

Correlation Coefficient

Inhibrx  Accelerate Acquisition

Pay attention - limited upside

The 3 months correlation between Inhibrx and Accelerate is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and Accelerate Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accelerate Acquisition and Inhibrx 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 Inhibrx are associated (or correlated) with Accelerate Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accelerate Acquisition has no effect on the direction of Inhibrx i.e., Inhibrx and Accelerate Acquisition go up and down completely randomly.

Pair Corralation between Inhibrx and Accelerate Acquisition

If you would invest (100.00) in Accelerate Acquisition Corp on October 23, 2024 and sell it today you would earn a total of  100.00  from holding Accelerate Acquisition Corp or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Inhibrx  vs.  Accelerate Acquisition Corp

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 weak performance in the last few months, the Stock's fundamental drivers remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Accelerate Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Accelerate Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Accelerate Acquisition is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Inhibrx and Accelerate Acquisition

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

The idea behind Inhibrx and Accelerate Acquisition Corp 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.