Correlation Between Grindrod and Inhibrx
Can any of the company-specific risk be diversified away by investing in both Grindrod 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 Grindrod and Inhibrx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grindrod Ltd ADR and Inhibrx, you can compare the effects of market volatilities on Grindrod 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 Grindrod with a short position of Inhibrx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grindrod and Inhibrx.
Diversification Opportunities for Grindrod and Inhibrx
Very good diversification
The 3 months correlation between Grindrod and Inhibrx is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Grindrod Ltd ADR and Inhibrx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inhibrx and Grindrod 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 Grindrod Ltd ADR 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 Grindrod i.e., Grindrod and Inhibrx go up and down completely randomly.
Pair Corralation between Grindrod and Inhibrx
Assuming the 90 days horizon Grindrod is expected to generate 1.01 times less return on investment than Inhibrx. But when comparing it to its historical volatility, Grindrod Ltd ADR is 54.42 times less risky than Inhibrx. It trades about 0.09 of its potential returns per unit of risk. Inhibrx is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,543 in Inhibrx on September 4, 2024 and sell it today you would lose (1,035) from holding Inhibrx or give up 40.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Grindrod Ltd ADR vs. Inhibrx
Performance |
| Timeline |
| Grindrod ADR |
| Inhibrx |
Grindrod and Inhibrx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grindrod and Inhibrx
The main advantage of trading using opposite Grindrod and Inhibrx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grindrod 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.| Grindrod vs. NETGEAR | Grindrod vs. Valneva SE ADR | Grindrod vs. Radcom | Grindrod vs. Everspin Technologies |
| 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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