Correlation Between Inhibrx and Aldel Financial
Can any of the company-specific risk be diversified away by investing in both Inhibrx and Aldel Financial 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 Aldel Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inhibrx and Aldel Financial II, you can compare the effects of market volatilities on Inhibrx and Aldel Financial 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 Aldel Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inhibrx and Aldel Financial.
Diversification Opportunities for Inhibrx and Aldel Financial
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Inhibrx and Aldel is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and Aldel Financial II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aldel Financial II 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 Aldel Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aldel Financial II has no effect on the direction of Inhibrx i.e., Inhibrx and Aldel Financial go up and down completely randomly.
Pair Corralation between Inhibrx and Aldel Financial
Given the investment horizon of 90 days Inhibrx is expected to under-perform the Aldel Financial. In addition to that, Inhibrx is 41.62 times more volatile than Aldel Financial II. It trades about -0.07 of its total potential returns per unit of risk. Aldel Financial II is currently generating about 0.24 per unit of volatility. If you would invest 993.00 in Aldel Financial II on October 25, 2024 and sell it today you would earn a total of 4.00 from holding Aldel Financial II or generate 0.4% 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. Aldel Financial II
Performance |
| Timeline |
| Inhibrx |
| Aldel Financial II |
Inhibrx and Aldel Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inhibrx and Aldel Financial
The main advantage of trading using opposite Inhibrx and Aldel Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inhibrx position performs unexpectedly, Aldel Financial 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 Aldel Financial will offset losses from the drop in Aldel Financial's long position.| Inhibrx vs. Crinetics Pharmaceuticals | Inhibrx vs. Merus BV | Inhibrx vs. Lyell Immunopharma | Inhibrx vs. Kronos Bio |
| Aldel Financial vs. Alvotech | Aldel Financial vs. Seadrill Limited | Aldel Financial vs. Inhibrx | Aldel Financial vs. Pembina Pipeline |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |