Correlation Between Mind Medicine and Inhibrx

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

By analyzing existing cross correlation between Mind Medicine and Inhibrx, you can compare the effects of market volatilities on Mind Medicine and Inhibrx 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 Mind Medicine with a short position of Inhibrx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mind Medicine and Inhibrx.

Diversification Opportunities for Mind Medicine and Inhibrx

-0.11

Correlation Coefficient

Mind Medicine  Inhibrx

Good diversification

The 3 months correlation between Mind and Inhibrx is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Mind Medicine and Inhibrx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inhibrx and Mind Medicine 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 Mind Medicine are associated (or correlated) with Inhibrx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inhibrx has no effect on the direction of Mind Medicine i.e., Mind Medicine and Inhibrx go up and down completely randomly.

Pair Corralation between Mind Medicine and Inhibrx

Given the investment horizon of 90 days Mind Medicine is expected to generate 1.94 times more return on investment than Inhibrx. However, Mind Medicine is 1.94 times more volatile than Inhibrx. It trades about 0.26 of its potential returns per unit of risk. Inhibrx is currently generating about -0.01 per unit of risk. If you would invest  606.00  in Mind Medicine on September 3, 2024 and sell it today you would earn a total of  211.00  from holding Mind Medicine or generate 34.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Mind Medicine  vs.  Inhibrx

Mind Medicine

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mind Medicine are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady primary indicators, Mind Medicine exhibited solid returns over the last few months and may actually be approaching a breakup point.

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

Pair Trading with Mind Medicine and Inhibrx

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

The idea behind Mind Medicine and Inhibrx 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..