Correlation Between SIMON and Inhibrx

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

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

Diversification Opportunities for SIMON and Inhibrx

-0.03

Correlation Coefficient

SIMON  Inhibrx

Good diversification

The 3 months correlation between SIMON and Inhibrx is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding SIMON PROPERTY GROUP and Inhibrx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inhibrx and SIMON 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 SIMON PROPERTY GROUP 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 SIMON i.e., SIMON and Inhibrx go up and down completely randomly.

Pair Corralation between SIMON and Inhibrx

Assuming the 90 days trading horizon SIMON PROPERTY GROUP is expected to under-perform the Inhibrx. But the bond apears to be less risky and, when comparing its historical volatility, SIMON PROPERTY GROUP is 9.24 times less risky than Inhibrx. The bond trades about -0.01 of its potential returns per unit of risk. The Inhibrx is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  2,213  in Inhibrx on October 9, 2024 and sell it today you would lose (561.00) from holding Inhibrx or give up 25.35% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.19%
Values	Daily Returns

SIMON PROPERTY GROUP  vs.  Inhibrx

SIMON PROPERTY GROUP

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SIMON PROPERTY GROUP has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for SIMON PROPERTY GROUP 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 SIMON and Inhibrx

The main advantage of trading using opposite SIMON and Inhibrx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIMON 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 SIMON PROPERTY GROUP 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.