Correlation Between Inhibrx and Kiora Pharmaceuticals

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

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

Diversification Opportunities for Inhibrx and Kiora Pharmaceuticals

-0.12

Correlation Coefficient

Inhibrx  Kiora Pharmaceuticals

Good diversification

The 3 months correlation between Inhibrx and Kiora is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and Kiora Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kiora Pharmaceuticals 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 Kiora Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kiora Pharmaceuticals has no effect on the direction of Inhibrx i.e., Inhibrx and Kiora Pharmaceuticals go up and down completely randomly.

Pair Corralation between Inhibrx and Kiora Pharmaceuticals

Given the investment horizon of 90 days Inhibrx is expected to under-perform the Kiora Pharmaceuticals. But the stock apears to be less risky and, when comparing its historical volatility, Inhibrx is 1.17 times less risky than Kiora Pharmaceuticals. The stock trades about -0.02 of its potential returns per unit of risk. The Kiora Pharmaceuticals is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  330.00  in Kiora Pharmaceuticals on December 28, 2024 and sell it today you would lose (22.00) from holding Kiora Pharmaceuticals or give up 6.67% of portfolio value over 90 days.

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

Inhibrx  vs.  Kiora Pharmaceuticals

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.

Kiora Pharmaceuticals

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Inhibrx and Kiora Pharmaceuticals

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

The idea behind Inhibrx and Kiora Pharmaceuticals 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .