Correlation Between Inhibrx and 512807AW8

Can any of the company-specific risk be diversified away by investing in both Inhibrx and 512807AW8 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 512807AW8 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Inhibrx and LAM RESEARCH PORATION, you can compare the effects of market volatilities on Inhibrx and 512807AW8 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 512807AW8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inhibrx and 512807AW8.

Diversification Opportunities for Inhibrx and 512807AW8

0.39

Correlation Coefficient

Inhibrx  512807AW8

Weak diversification

The 3 months correlation between Inhibrx and 512807AW8 is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and LAM RESEARCH PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LAM RESEARCH PORATION 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 512807AW8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LAM RESEARCH PORATION has no effect on the direction of Inhibrx i.e., Inhibrx and 512807AW8 go up and down completely randomly.

Pair Corralation between Inhibrx and 512807AW8

Given the investment horizon of 90 days Inhibrx is expected to generate 4.56 times less return on investment than 512807AW8. In addition to that, Inhibrx is 3.32 times more volatile than LAM RESEARCH PORATION. It trades about 0.01 of its total potential returns per unit of risk. LAM RESEARCH PORATION is currently generating about 0.15 per unit of volatility. If you would invest  6,382  in LAM RESEARCH PORATION on December 25, 2024 and sell it today you would earn a total of  534.00  from holding LAM RESEARCH PORATION or generate 8.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	93.22%
Values	Daily Returns

Inhibrx  vs.  LAM RESEARCH PORATION

Inhibrx

Risk-Adjusted Performance

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

LAM RESEARCH PORATION

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in LAM RESEARCH PORATION are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating basic indicators, 512807AW8 may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Inhibrx and 512807AW8

The main advantage of trading using opposite Inhibrx and 512807AW8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inhibrx position performs unexpectedly, 512807AW8 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 512807AW8 will offset losses from the drop in 512807AW8's long position.

The idea behind Inhibrx and LAM RESEARCH PORATION 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..