Correlation Between 629377CP5 and Inhibrx

Can any of the company-specific risk be diversified away by investing in both 629377CP5 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 629377CP5 and Inhibrx into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between US629377CP59 and Inhibrx, you can compare the effects of market volatilities on 629377CP5 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 629377CP5 with a short position of Inhibrx. Check out your portfolio center. Please also check ongoing floating volatility patterns of 629377CP5 and Inhibrx.

Diversification Opportunities for 629377CP5 and Inhibrx

0.0

Correlation Coefficient

629377CP5  Inhibrx

Pay attention - limited upside

The 3 months correlation between 629377CP5 and Inhibrx is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding US629377CP59 and Inhibrx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inhibrx and 629377CP5 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 US629377CP59 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 629377CP5 i.e., 629377CP5 and Inhibrx go up and down completely randomly.

Pair Corralation between 629377CP5 and Inhibrx

If you would invest  2,366  in Inhibrx on October 4, 2024 and sell it today you would lose (841.00) from holding Inhibrx or give up 35.55% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.2%
Values	Daily Returns

US629377CP59  vs.  Inhibrx

US629377CP59

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days US629377CP59 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 629377CP5 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

2 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Inhibrx are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. 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 629377CP5 and Inhibrx

The main advantage of trading using opposite 629377CP5 and Inhibrx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 629377CP5 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 US629377CP59 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 Global Correlations module to find global opportunities by holding instruments from different markets.