Correlation Between 209111GE7 and Inhibrx

Can any of the company-specific risk be diversified away by investing in both 209111GE7 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 209111GE7 and Inhibrx into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ED 52 01 MAR 33 and Inhibrx, you can compare the effects of market volatilities on 209111GE7 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 209111GE7 with a short position of Inhibrx. Check out your portfolio center. Please also check ongoing floating volatility patterns of 209111GE7 and Inhibrx.

Diversification Opportunities for 209111GE7 and Inhibrx

0.47

Correlation Coefficient

209111GE7  Inhibrx

Very weak diversification

The 3 months correlation between 209111GE7 and Inhibrx is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding ED 52 01 MAR 33 and Inhibrx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inhibrx and 209111GE7 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 ED 52 01 MAR 33 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 209111GE7 i.e., 209111GE7 and Inhibrx go up and down completely randomly.

Pair Corralation between 209111GE7 and Inhibrx

Assuming the 90 days trading horizon 209111GE7 is expected to generate 6.83 times less return on investment than Inhibrx. But when comparing it to its historical volatility, ED 52 01 MAR 33 is 1.63 times less risky than Inhibrx. It trades about 0.06 of its potential returns per unit of risk. Inhibrx is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  1,493  in Inhibrx on October 9, 2024 and sell it today you would earn a total of  159.00  from holding Inhibrx or generate 10.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	94.74%
Values	Daily Returns

ED 52 01 MAR 33  vs.  Inhibrx

209111GE7

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ED 52 01 MAR 33 are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 209111GE7 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Inhibrx

Risk-Adjusted Performance

3 of 100

Weak

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.

Pair Trading with 209111GE7 and Inhibrx

The main advantage of trading using opposite 209111GE7 and Inhibrx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 209111GE7 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 ED 52 01 MAR 33 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.

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 Bonds Directory module to find actively traded corporate debentures issued by US companies.