Correlation Between Inhibrx and Dyadic International

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

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

Diversification Opportunities for Inhibrx and Dyadic International

0.53

Correlation Coefficient

Inhibrx  Dyadic International

Very weak diversification

The 3 months correlation between Inhibrx and Dyadic is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and Dyadic International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dyadic International 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 Dyadic International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dyadic International has no effect on the direction of Inhibrx i.e., Inhibrx and Dyadic International go up and down completely randomly.

Pair Corralation between Inhibrx and Dyadic International

Given the investment horizon of 90 days Inhibrx is expected to generate 0.88 times more return on investment than Dyadic International. However, Inhibrx is 1.14 times less risky than Dyadic International. It trades about -0.01 of its potential returns per unit of risk. Dyadic International is currently generating about -0.1 per unit of risk. If you would invest  1,514  in Inhibrx on December 29, 2024 and sell it today you would lose (82.00) from holding Inhibrx or give up 5.42% of portfolio value over 90 days.

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

Inhibrx  vs.  Dyadic International

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 fairly strong fundamental drivers, Inhibrx is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Dyadic International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dyadic International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Inhibrx and Dyadic International

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

The idea behind Inhibrx and Dyadic International 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.