Correlation Between Inhibrx and Scisparc

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

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

Diversification Opportunities for Inhibrx and Scisparc

-0.1

Correlation Coefficient

Inhibrx  Scisparc

Good diversification

The 3 months correlation between Inhibrx and Scisparc is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and Scisparc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scisparc 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 Scisparc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scisparc has no effect on the direction of Inhibrx i.e., Inhibrx and Scisparc go up and down completely randomly.

Pair Corralation between Inhibrx and Scisparc

Given the investment horizon of 90 days Inhibrx is expected to under-perform the Scisparc. But the stock apears to be less risky and, when comparing its historical volatility, Inhibrx is 7.05 times less risky than Scisparc. The stock trades about -0.09 of its potential returns per unit of risk. The Scisparc is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  21.00  in Scisparc on November 29, 2024 and sell it today you would earn a total of  16.00  from holding Scisparc or generate 76.19% return on investment over 90 days.

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

Inhibrx  vs.  Scisparc

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.

Scisparc

Risk-Adjusted Performance

OK

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

Pair Trading with Inhibrx and Scisparc

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

The idea behind Inhibrx and Scisparc 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.