Correlation Between Inhibrx and Technology One

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

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

Diversification Opportunities for Inhibrx and Technology One

-0.45

Correlation Coefficient

Inhibrx  Technology One

Very good diversification

The 3 months correlation between Inhibrx and Technology is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and Technology One Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Technology One 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 Technology One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Technology One has no effect on the direction of Inhibrx i.e., Inhibrx and Technology One go up and down completely randomly.

Pair Corralation between Inhibrx and Technology One

If you would invest  1,493  in Inhibrx on October 10, 2024 and sell it today you would earn a total of  58.00  from holding Inhibrx or generate 3.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.24%
Values	Daily Returns

Inhibrx  vs.  Technology One Limited

Inhibrx

Risk-Adjusted Performance

0 of 100

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 current stock price disturbance, may contribute to short-term losses for the investors.

Technology One

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Technology One Limited are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Technology One reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Inhibrx and Technology One

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

The idea behind Inhibrx and Technology One Limited 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.