Correlation Between 26442UAL8 and Inhibrx

Can any of the company-specific risk be diversified away by investing in both 26442UAL8 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 26442UAL8 and Inhibrx into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between DUK 2 15 AUG 31 and Inhibrx, you can compare the effects of market volatilities on 26442UAL8 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 26442UAL8 with a short position of Inhibrx. Check out your portfolio center. Please also check ongoing floating volatility patterns of 26442UAL8 and Inhibrx.

Diversification Opportunities for 26442UAL8 and Inhibrx

0.4

Correlation Coefficient

26442UAL8  Inhibrx

Very weak diversification

The 3 months correlation between 26442UAL8 and Inhibrx is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding DUK 2 15 AUG 31 and Inhibrx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inhibrx and 26442UAL8 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 DUK 2 15 AUG 31 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 26442UAL8 i.e., 26442UAL8 and Inhibrx go up and down completely randomly.

Pair Corralation between 26442UAL8 and Inhibrx

Assuming the 90 days trading horizon DUK 2 15 AUG 31 is expected to generate 0.15 times more return on investment than Inhibrx. However, DUK 2 15 AUG 31 is 6.78 times less risky than Inhibrx. It trades about -0.14 of its potential returns per unit of risk. Inhibrx is currently generating about -0.11 per unit of risk. If you would invest  8,274  in DUK 2 15 AUG 31 on October 25, 2024 and sell it today you would lose (130.00) from holding DUK 2 15 AUG 31 or give up 1.57% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.0%
Values	Daily Returns

DUK 2 15 AUG 31  vs.  Inhibrx

26442UAL8

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days DUK 2 15 AUG 31 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 26442UAL8 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

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 latest weak performance, the Stock's fundamental drivers remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with 26442UAL8 and Inhibrx

The main advantage of trading using opposite 26442UAL8 and Inhibrx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 26442UAL8 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 DUK 2 15 AUG 31 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.