Correlation Between Inhibrx and NESNVX

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

By analyzing existing cross correlation between Inhibrx and NESNVX 4 12 SEP 25, you can compare the effects of market volatilities on Inhibrx and NESNVX 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 NESNVX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inhibrx and NESNVX.

Diversification Opportunities for Inhibrx and NESNVX

-0.36

Correlation Coefficient

Inhibrx  NESNVX

Very good diversification

The 3 months correlation between Inhibrx and NESNVX is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and NESNVX 4 12 SEP 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NESNVX 4 12 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 NESNVX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NESNVX 4 12 has no effect on the direction of Inhibrx i.e., Inhibrx and NESNVX go up and down completely randomly.

Pair Corralation between Inhibrx and NESNVX

Given the investment horizon of 90 days Inhibrx is expected to generate 16.43 times more return on investment than NESNVX. However, Inhibrx is 16.43 times more volatile than NESNVX 4 12 SEP 25. It trades about 0.01 of its potential returns per unit of risk. NESNVX 4 12 SEP 25 is currently generating about -0.01 per unit of risk. If you would invest  2,332  in Inhibrx on October 6, 2024 and sell it today you would lose (717.00) from holding Inhibrx or give up 30.75% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	42.74%
Values	Daily Returns

Inhibrx  vs.  NESNVX 4 12 SEP 25

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.

NESNVX 4 12

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NESNVX 4 12 SEP 25 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, NESNVX is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Inhibrx and NESNVX

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

The idea behind Inhibrx and NESNVX 4 12 SEP 25 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..