Correlation Between Immatics and Inhibrx
Can any of the company-specific risk be diversified away by investing in both Immatics 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 Immatics and Inhibrx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Immatics NV and Inhibrx, you can compare the effects of market volatilities on Immatics 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 Immatics with a short position of Inhibrx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immatics and Inhibrx.
Diversification Opportunities for Immatics and Inhibrx
Modest diversification
The 3 months correlation between Immatics and Inhibrx is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Immatics NV and Inhibrx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inhibrx and Immatics 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 Immatics NV 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 Immatics i.e., Immatics and Inhibrx go up and down completely randomly.
Pair Corralation between Immatics and Inhibrx
Given the investment horizon of 90 days Immatics NV is expected to under-perform the Inhibrx. But the stock apears to be less risky and, when comparing its historical volatility, Immatics NV is 1.53 times less risky than Inhibrx. The stock trades about -0.45 of its potential returns per unit of risk. The Inhibrx is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 1,600 in Inhibrx on August 27, 2024 and sell it today you would lose (114.00) from holding Inhibrx or give up 7.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Immatics NV vs. Inhibrx
Performance |
| Timeline |
| Immatics NV |
| Inhibrx |
Immatics and Inhibrx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Immatics and Inhibrx
The main advantage of trading using opposite Immatics and Inhibrx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Immatics 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.| Immatics vs. Crinetics Pharmaceuticals | Immatics vs. Alx Oncology Holdings | Immatics vs. Bioatla | Immatics vs. Aerovate Therapeutics |
| 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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