Correlation Between Maison Solutions and Inhibrx

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

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

Diversification Opportunities for Maison Solutions and Inhibrx

0.22

Correlation Coefficient

Maison Solutions  Inhibrx

Modest diversification

The 3 months correlation between Maison and Inhibrx is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Maison Solutions and Inhibrx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inhibrx and Maison Solutions 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 Maison Solutions 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 Maison Solutions i.e., Maison Solutions and Inhibrx go up and down completely randomly.

Pair Corralation between Maison Solutions and Inhibrx

Considering the 90-day investment horizon Maison Solutions is expected to generate 2.07 times more return on investment than Inhibrx. However, Maison Solutions is 2.07 times more volatile than Inhibrx. It trades about 0.0 of its potential returns per unit of risk. Inhibrx is currently generating about -0.02 per unit of risk. If you would invest  123.00  in Maison Solutions on December 28, 2024 and sell it today you would lose (15.00) from holding Maison Solutions or give up 12.2% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Maison Solutions  vs.  Inhibrx

Maison Solutions

Risk-Adjusted Performance

Very Weak

Over the last 90 days Maison Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Maison Solutions is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Inhibrx

Risk-Adjusted Performance

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

Pair Trading with Maison Solutions and Inhibrx

The main advantage of trading using opposite Maison Solutions and Inhibrx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maison Solutions 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 Maison Solutions 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.