Correlation Between Inhibrx and Ambari Brands

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

By analyzing existing cross correlation between Inhibrx and Ambari Brands, you can compare the effects of market volatilities on Inhibrx and Ambari Brands 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 Ambari Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inhibrx and Ambari Brands.

Diversification Opportunities for Inhibrx and Ambari Brands

-0.07

Correlation Coefficient

Inhibrx  Ambari Brands

Good diversification

The 3 months correlation between Inhibrx and Ambari is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and Ambari Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambari Brands 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 Ambari Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambari Brands has no effect on the direction of Inhibrx i.e., Inhibrx and Ambari Brands go up and down completely randomly.

Pair Corralation between Inhibrx and Ambari Brands

If you would invest  1,493  in Inhibrx on October 9, 2024 and sell it today you would earn a total of  58.00  from holding Inhibrx or generate 3.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	5.0%
Values	Daily Returns

Inhibrx  vs.  Ambari Brands

Inhibrx

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Inhibrx are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak fundamental drivers, Inhibrx may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Ambari Brands

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Ambari Brands has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly unfluctuating fundamental drivers, Ambari Brands reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Inhibrx and Ambari Brands

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

The idea behind Inhibrx and Ambari Brands 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.