Correlation Between Neogen and Inhibrx

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

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

Diversification Opportunities for Neogen and Inhibrx

0.51

Correlation Coefficient

Neogen  Inhibrx

Very weak diversification

The 3 months correlation between Neogen and Inhibrx is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Neogen and Inhibrx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inhibrx and Neogen 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 Neogen 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 Neogen i.e., Neogen and Inhibrx go up and down completely randomly.

Pair Corralation between Neogen and Inhibrx

Given the investment horizon of 90 days Neogen is expected to under-perform the Inhibrx. But the stock apears to be less risky and, when comparing its historical volatility, Neogen is 1.32 times less risky than Inhibrx. The stock trades about -0.16 of its potential returns per unit of risk. The Inhibrx is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  1,460  in Inhibrx on December 20, 2024 and sell it today you would lose (60.00) from holding Inhibrx or give up 4.11% of portfolio value over 90 days.

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

Neogen  vs.  Inhibrx

Neogen

Risk-Adjusted Performance

Very Weak

Over the last 90 days Neogen has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

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

Pair Trading with Neogen and Inhibrx

The main advantage of trading using opposite Neogen and Inhibrx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neogen 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 Neogen 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.