Correlation Between Inhibrx and SVELEV

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

By analyzing existing cross correlation between Inhibrx and SVELEV 28 10 FEB 51, you can compare the effects of market volatilities on Inhibrx and SVELEV 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 SVELEV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inhibrx and SVELEV.

Diversification Opportunities for Inhibrx and SVELEV

0.66

Correlation Coefficient

Inhibrx  SVELEV

Poor diversification

The 3 months correlation between Inhibrx and SVELEV is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and SVELEV 28 10 FEB 51 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SVELEV 28 10 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 SVELEV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SVELEV 28 10 has no effect on the direction of Inhibrx i.e., Inhibrx and SVELEV go up and down completely randomly.

Pair Corralation between Inhibrx and SVELEV

Given the investment horizon of 90 days Inhibrx is expected to generate 2.01 times more return on investment than SVELEV. However, Inhibrx is 2.01 times more volatile than SVELEV 28 10 FEB 51. It trades about 0.05 of its potential returns per unit of risk. SVELEV 28 10 FEB 51 is currently generating about 0.02 per unit of risk. If you would invest  1,527  in Inhibrx on October 7, 2024 and sell it today you would earn a total of  88.00  from holding Inhibrx or generate 5.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	65.08%
Values	Daily Returns

Inhibrx  vs.  SVELEV 28 10 FEB 51

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.

SVELEV 28 10

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SVELEV 28 10 FEB 51 are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, SVELEV is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Inhibrx and SVELEV

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

The idea behind Inhibrx and SVELEV 28 10 FEB 51 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.