Correlation Between Inhibrx and Aligos Therapeutics
Can any of the company-specific risk be diversified away by investing in both Inhibrx and Aligos Therapeutics 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 Aligos Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inhibrx and Aligos Therapeutics, you can compare the effects of market volatilities on Inhibrx and Aligos Therapeutics 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 Aligos Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inhibrx and Aligos Therapeutics.
Diversification Opportunities for Inhibrx and Aligos Therapeutics
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Inhibrx and Aligos is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and Aligos Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aligos Therapeutics 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 Aligos Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aligos Therapeutics has no effect on the direction of Inhibrx i.e., Inhibrx and Aligos Therapeutics go up and down completely randomly.
Pair Corralation between Inhibrx and Aligos Therapeutics
Given the investment horizon of 90 days Inhibrx is expected to generate 3.7 times less return on investment than Aligos Therapeutics. But when comparing it to its historical volatility, Inhibrx is 1.42 times less risky than Aligos Therapeutics. It trades about 0.01 of its potential returns per unit of risk. Aligos Therapeutics is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 3,600 in Aligos Therapeutics on September 3, 2024 and sell it today you would lose (1,028) from holding Aligos Therapeutics or give up 28.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inhibrx vs. Aligos Therapeutics
Performance |
| Timeline |
| Inhibrx |
| Aligos Therapeutics |
Inhibrx and Aligos Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inhibrx and Aligos Therapeutics
The main advantage of trading using opposite Inhibrx and Aligos Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inhibrx position performs unexpectedly, Aligos Therapeutics 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 Aligos Therapeutics will offset losses from the drop in Aligos Therapeutics' long position.| Inhibrx vs. DiaMedica Therapeutics | Inhibrx vs. Lyra Therapeutics | Inhibrx vs. Centessa Pharmaceuticals PLC |
| Aligos Therapeutics vs. CytomX Therapeutics | Aligos Therapeutics vs. Spero Therapeutics | Aligos Therapeutics vs. Instil Bio | Aligos Therapeutics vs. NextCure |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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