Correlation Between Inhibrx and Definitive Healthcare

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Can any of the company-specific risk be diversified away by investing in both Inhibrx and Definitive Healthcare 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 Definitive Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inhibrx and Definitive Healthcare Corp, you can compare the effects of market volatilities on Inhibrx and Definitive Healthcare 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 Definitive Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inhibrx and Definitive Healthcare.

Diversification Opportunities for Inhibrx and Definitive Healthcare

InhibrxDefinitiveDiversified AwayInhibrxDefinitiveDiversified Away100%
0.13
  Correlation Coefficient

Average diversification

The 3 months correlation between Inhibrx and Definitive is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and Definitive Healthcare Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Definitive Healthcare 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 Definitive Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Definitive Healthcare has no effect on the direction of Inhibrx i.e., Inhibrx and Definitive Healthcare go up and down completely randomly.

Pair Corralation between Inhibrx and Definitive Healthcare

Given the investment horizon of 90 days Inhibrx is expected to under-perform the Definitive Healthcare. In addition to that, Inhibrx is 1.04 times more volatile than Definitive Healthcare Corp. It trades about -0.09 of its total potential returns per unit of risk. Definitive Healthcare Corp is currently generating about 0.09 per unit of volatility. If you would invest  422.00  in Definitive Healthcare Corp on October 28, 2024 and sell it today you would earn a total of  61.00  from holding Definitive Healthcare Corp or generate 14.45% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Inhibrx  vs.  Definitive Healthcare Corp

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -20-15-10-505
JavaScript chart by amCharts 3.21.15INBX DH
       Timeline  
Inhibrx 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
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.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan1314151617
Definitive Healthcare 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Definitive Healthcare Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak technical indicators, Definitive Healthcare demonstrated solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan3.844.24.44.64.85

Inhibrx and Definitive Healthcare Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-5.16-3.86-2.57-1.270.01.22.393.594.78 0.0340.0360.0380.0400.0420.044
JavaScript chart by amCharts 3.21.15INBX DH
       Returns  

Pair Trading with Inhibrx and Definitive Healthcare

The main advantage of trading using opposite Inhibrx and Definitive Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inhibrx position performs unexpectedly, Definitive Healthcare 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 Definitive Healthcare will offset losses from the drop in Definitive Healthcare's long position.
The idea behind Inhibrx and Definitive Healthcare 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.
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

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