Correlation Between Inhibrx and Kymera Therapeutics
Can any of the company-specific risk be diversified away by investing in both Inhibrx and Kymera Therapeutics 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 Kymera Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inhibrx and Kymera Therapeutics, you can compare the effects of market volatilities on Inhibrx and Kymera Therapeutics 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 Kymera Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inhibrx and Kymera Therapeutics.
Diversification Opportunities for Inhibrx and Kymera Therapeutics
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Inhibrx and Kymera is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and Kymera Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kymera Therapeutics 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 Kymera Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kymera Therapeutics has no effect on the direction of Inhibrx i.e., Inhibrx and Kymera Therapeutics go up and down completely randomly.
Pair Corralation between Inhibrx and Kymera Therapeutics
Given the investment horizon of 90 days Inhibrx is expected to generate 0.7 times more return on investment than Kymera Therapeutics. However, Inhibrx is 1.42 times less risky than Kymera Therapeutics. It trades about -0.02 of its potential returns per unit of risk. Kymera Therapeutics is currently generating about -0.28 per unit of risk. If you would invest 1,355 in Inhibrx on December 1, 2024 and sell it today you would lose (30.00) from holding Inhibrx or give up 2.21% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Inhibrx vs. Kymera Therapeutics
Performance |
Timeline |
Inhibrx |
Kymera Therapeutics |
Inhibrx and Kymera Therapeutics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Inhibrx and Kymera Therapeutics
The main advantage of trading using opposite Inhibrx and Kymera Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inhibrx position performs unexpectedly, Kymera Therapeutics 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 Kymera Therapeutics will offset losses from the drop in Kymera Therapeutics' long position.Inhibrx vs. Crinetics Pharmaceuticals | Inhibrx vs. Merus BV | Inhibrx vs. Lyell Immunopharma | Inhibrx vs. Kronos Bio |
Kymera Therapeutics vs. Foghorn Therapeutics | Kymera Therapeutics vs. Shattuck Labs | Kymera Therapeutics vs. Monte Rosa Therapeutics | Kymera Therapeutics vs. Nurix Therapeutics |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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