Correlation Between DiaMedica Therapeutics and Inhibrx
Can any of the company-specific risk be diversified away by investing in both DiaMedica Therapeutics 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 DiaMedica Therapeutics and Inhibrx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DiaMedica Therapeutics and Inhibrx, you can compare the effects of market volatilities on DiaMedica Therapeutics 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 DiaMedica Therapeutics with a short position of Inhibrx. Check out your portfolio center. Please also check ongoing floating volatility patterns of DiaMedica Therapeutics and Inhibrx.
Diversification Opportunities for DiaMedica Therapeutics and Inhibrx
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between DiaMedica and Inhibrx is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding DiaMedica Therapeutics and Inhibrx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inhibrx and DiaMedica Therapeutics 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 DiaMedica Therapeutics 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 DiaMedica Therapeutics i.e., DiaMedica Therapeutics and Inhibrx go up and down completely randomly.
Pair Corralation between DiaMedica Therapeutics and Inhibrx
Given the investment horizon of 90 days DiaMedica Therapeutics is expected to generate 0.92 times more return on investment than Inhibrx. However, DiaMedica Therapeutics is 1.08 times less risky than Inhibrx. It trades about 0.06 of its potential returns per unit of risk. Inhibrx is currently generating about 0.0 per unit of risk. If you would invest 297.00 in DiaMedica Therapeutics on September 4, 2024 and sell it today you would earn a total of 237.00 from holding DiaMedica Therapeutics or generate 79.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DiaMedica Therapeutics vs. Inhibrx
Performance |
| Timeline |
| DiaMedica Therapeutics |
| Inhibrx |
DiaMedica Therapeutics and Inhibrx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DiaMedica Therapeutics and Inhibrx
The main advantage of trading using opposite DiaMedica Therapeutics and Inhibrx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DiaMedica Therapeutics 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.| DiaMedica Therapeutics vs. Milestone Pharmaceuticals | DiaMedica Therapeutics vs. Seres Therapeutics | DiaMedica Therapeutics vs. Inhibikase Therapeutics | DiaMedica Therapeutics vs. Oncolytics Biotech |
| 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |