Correlation Between Inhibrx and Oxford Nanopore

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

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

Diversification Opportunities for Inhibrx and Oxford Nanopore

0.37

Correlation Coefficient

Inhibrx  Oxford Nanopore

Weak diversification

The 3 months correlation between Inhibrx and Oxford is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and Oxford Nanopore Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Nanopore Tech 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 Oxford Nanopore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Nanopore Tech has no effect on the direction of Inhibrx i.e., Inhibrx and Oxford Nanopore go up and down completely randomly.

Pair Corralation between Inhibrx and Oxford Nanopore

Given the investment horizon of 90 days Inhibrx is expected to generate 0.47 times more return on investment than Oxford Nanopore. However, Inhibrx is 2.14 times less risky than Oxford Nanopore. It trades about 0.07 of its potential returns per unit of risk. Oxford Nanopore Technologies is currently generating about -0.09 per unit of risk. If you would invest  1,570  in Inhibrx on October 7, 2024 and sell it today you would earn a total of  45.00  from holding Inhibrx or generate 2.87% 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.  Oxford Nanopore Technologies

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.

Oxford Nanopore Tech

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Oxford Nanopore Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Inhibrx and Oxford Nanopore

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

The idea behind Inhibrx and Oxford Nanopore Technologies 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.