Correlation Between Inhibrx and EOANGR

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

By analyzing existing cross correlation between Inhibrx and EOANGR 665 30 APR 38, you can compare the effects of market volatilities on Inhibrx and EOANGR 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 EOANGR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inhibrx and EOANGR.

Diversification Opportunities for Inhibrx and EOANGR

0.38

Correlation Coefficient

Inhibrx  EOANGR

Weak diversification

The 3 months correlation between Inhibrx and EOANGR is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and EOANGR 665 30 APR 38 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EOANGR 665 30 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 EOANGR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EOANGR 665 30 has no effect on the direction of Inhibrx i.e., Inhibrx and EOANGR go up and down completely randomly.

Pair Corralation between Inhibrx and EOANGR

Given the investment horizon of 90 days Inhibrx is expected to under-perform the EOANGR. In addition to that, Inhibrx is 2.63 times more volatile than EOANGR 665 30 APR 38. It trades about -0.09 of its total potential returns per unit of risk. EOANGR 665 30 APR 38 is currently generating about 0.08 per unit of volatility. If you would invest  10,893  in EOANGR 665 30 APR 38 on October 27, 2024 and sell it today you would earn a total of  334.00  from holding EOANGR 665 30 APR 38 or generate 3.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	53.33%
Values	Daily Returns

Inhibrx  vs.  EOANGR 665 30 APR 38

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 weak performance in the last few months, the Stock's fundamental drivers remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

EOANGR 665 30

Risk-Adjusted Performance

6 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in EOANGR 665 30 APR 38 are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, EOANGR may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Inhibrx and EOANGR

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

The idea behind Inhibrx and EOANGR 665 30 APR 38 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.

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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.