Correlation Between Inhibrx and ImmuCell

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

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

Diversification Opportunities for Inhibrx and ImmuCell

-0.32

Correlation Coefficient

Inhibrx  ImmuCell

Very good diversification

The 3 months correlation between Inhibrx and ImmuCell is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and ImmuCell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImmuCell 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 ImmuCell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ImmuCell has no effect on the direction of Inhibrx i.e., Inhibrx and ImmuCell go up and down completely randomly.

Pair Corralation between Inhibrx and ImmuCell

Given the investment horizon of 90 days Inhibrx is expected to generate 0.96 times more return on investment than ImmuCell. However, Inhibrx is 1.04 times less risky than ImmuCell. It trades about 0.06 of its potential returns per unit of risk. ImmuCell is currently generating about 0.03 per unit of risk. If you would invest  1,224  in Inhibrx on November 29, 2024 and sell it today you would earn a total of  36.00  from holding Inhibrx or generate 2.94% return on investment over 90 days.

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

Inhibrx  vs.  ImmuCell

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

ImmuCell

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ImmuCell are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile fundamental indicators, ImmuCell exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Inhibrx and ImmuCell

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

The idea behind Inhibrx and ImmuCell 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.