Correlation Between Inhibrx and Acumen Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Inhibrx and Acumen Pharmaceuticals 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 Acumen Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inhibrx and Acumen Pharmaceuticals, you can compare the effects of market volatilities on Inhibrx and Acumen Pharmaceuticals 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 Acumen Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inhibrx and Acumen Pharmaceuticals.
Diversification Opportunities for Inhibrx and Acumen Pharmaceuticals
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Inhibrx and Acumen is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and Acumen Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acumen Pharmaceuticals 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 Acumen Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acumen Pharmaceuticals has no effect on the direction of Inhibrx i.e., Inhibrx and Acumen Pharmaceuticals go up and down completely randomly.
Pair Corralation between Inhibrx and Acumen Pharmaceuticals
Given the investment horizon of 90 days Inhibrx is expected to generate 0.66 times more return on investment than Acumen Pharmaceuticals. However, Inhibrx is 1.51 times less risky than Acumen Pharmaceuticals. It trades about 0.02 of its potential returns per unit of risk. Acumen Pharmaceuticals is currently generating about -0.06 per unit of risk. If you would invest 1,393 in Inhibrx on August 24, 2024 and sell it today you would earn a total of 5.00 from holding Inhibrx or generate 0.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inhibrx vs. Acumen Pharmaceuticals
Performance |
| Timeline |
| Inhibrx |
| Acumen Pharmaceuticals |
Inhibrx and Acumen Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inhibrx and Acumen Pharmaceuticals
The main advantage of trading using opposite Inhibrx and Acumen Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inhibrx position performs unexpectedly, Acumen Pharmaceuticals 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 Acumen Pharmaceuticals will offset losses from the drop in Acumen Pharmaceuticals' long position.| Inhibrx vs. Crinetics Pharmaceuticals | Inhibrx vs. Merus BV | Inhibrx vs. Lyell Immunopharma | Inhibrx vs. Kronos Bio |
| Acumen Pharmaceuticals vs. Terns Pharmaceuticals | Acumen Pharmaceuticals vs. X4 Pharmaceuticals | Acumen Pharmaceuticals vs. Day One Biopharmaceuticals | Acumen Pharmaceuticals vs. Hookipa Pharma |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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