Correlation Between Chemours and Inhibrx
Can any of the company-specific risk be diversified away by investing in both Chemours 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 Chemours and Inhibrx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chemours Co and Inhibrx, you can compare the effects of market volatilities on Chemours 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 Chemours with a short position of Inhibrx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chemours and Inhibrx.
Diversification Opportunities for Chemours and Inhibrx
Good diversification
The 3 months correlation between Chemours and Inhibrx is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Chemours Co and Inhibrx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inhibrx and Chemours 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 Chemours Co 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 Chemours i.e., Chemours and Inhibrx go up and down completely randomly.
Pair Corralation between Chemours and Inhibrx
Allowing for the 90-day total investment horizon Chemours is expected to generate 4.25 times less return on investment than Inhibrx. But when comparing it to its historical volatility, Chemours Co is 1.35 times less risky than Inhibrx. It trades about 0.01 of its potential returns per unit of risk. Inhibrx is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,863 in Inhibrx on September 4, 2024 and sell it today you would lose (355.00) from holding Inhibrx or give up 19.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chemours Co vs. Inhibrx
Performance |
| Timeline |
| Chemours |
| Inhibrx |
Chemours and Inhibrx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chemours and Inhibrx
The main advantage of trading using opposite Chemours and Inhibrx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chemours 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.| Chemours vs. International Flavors Fragrances | Chemours vs. Air Products and | Chemours vs. PPG Industries | Chemours vs. Linde plc Ordinary |
| Inhibrx vs. Crinetics Pharmaceuticals | Inhibrx vs. Merus BV | Inhibrx vs. Lyell Immunopharma | Inhibrx vs. Kronos Bio |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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