Correlation Between Inhibrx and Jiangsu Expressway

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

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

Diversification Opportunities for Inhibrx and Jiangsu Expressway

0.21

Correlation Coefficient

Inhibrx  Jiangsu Expressway

Modest diversification

The 3 months correlation between Inhibrx and Jiangsu is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and Jiangsu Expressway Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Expressway 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 Jiangsu Expressway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Expressway has no effect on the direction of Inhibrx i.e., Inhibrx and Jiangsu Expressway go up and down completely randomly.

Pair Corralation between Inhibrx and Jiangsu Expressway

Given the investment horizon of 90 days Inhibrx is expected to generate 1.23 times less return on investment than Jiangsu Expressway. But when comparing it to its historical volatility, Inhibrx is 1.13 times less risky than Jiangsu Expressway. It trades about 0.02 of its potential returns per unit of risk. Jiangsu Expressway Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  2,135  in Jiangsu Expressway Co on October 7, 2024 and sell it today you would earn a total of  15.00  from holding Jiangsu Expressway Co or generate 0.7% return on investment over 90 days.

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

Inhibrx  vs.  Jiangsu Expressway Co

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.

Jiangsu Expressway

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jiangsu Expressway Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Jiangsu Expressway is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Inhibrx and Jiangsu Expressway

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

The idea behind Inhibrx and Jiangsu Expressway Co 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 Transaction History module to view history of all your transactions and understand their impact on performance.