Correlation Between Inhibrx and AbbVie
Can any of the company-specific risk be diversified away by investing in both Inhibrx and AbbVie 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 Inhibrx and AbbVie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inhibrx and AbbVie Inc, you can compare the effects of market volatilities on Inhibrx and AbbVie 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 Inhibrx with a short position of AbbVie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inhibrx and AbbVie.
Diversification Opportunities for Inhibrx and AbbVie
Very weak diversification
The 3 months correlation between Inhibrx and AbbVie is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and AbbVie Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AbbVie Inc and Inhibrx 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 Inhibrx are associated (or correlated) with AbbVie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AbbVie Inc has no effect on the direction of Inhibrx i.e., Inhibrx and AbbVie go up and down completely randomly.
Pair Corralation between Inhibrx and AbbVie
Given the investment horizon of 90 days Inhibrx is expected to generate 1.08 times more return on investment than AbbVie. However, Inhibrx is 1.08 times more volatile than AbbVie Inc. It trades about -0.05 of its potential returns per unit of risk. AbbVie Inc is currently generating about -0.15 per unit of risk. If you would invest 1,603 in Inhibrx on September 1, 2024 and sell it today you would lose (77.00) from holding Inhibrx or give up 4.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inhibrx vs. AbbVie Inc
Performance |
| Timeline |
| Inhibrx |
| AbbVie Inc |
Inhibrx and AbbVie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inhibrx and AbbVie
The main advantage of trading using opposite Inhibrx and AbbVie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inhibrx position performs unexpectedly, AbbVie 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 AbbVie will offset losses from the drop in AbbVie's long position.| Inhibrx vs. Crinetics Pharmaceuticals | Inhibrx vs. Merus BV | Inhibrx vs. Lyell Immunopharma | Inhibrx vs. Kronos Bio |
| AbbVie vs. Tff Pharmaceuticals | AbbVie vs. Eliem Therapeutics | AbbVie vs. Inhibrx | AbbVie vs. Enliven Therapeutics |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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