Correlation Between Inhibrx and Bank of China Ltd H
Can any of the company-specific risk be diversified away by investing in both Inhibrx and Bank of China Ltd H 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 Bank of China Ltd H into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inhibrx and Bank of China, you can compare the effects of market volatilities on Inhibrx and Bank of China Ltd H 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 Bank of China Ltd H. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inhibrx and Bank of China Ltd H.
Diversification Opportunities for Inhibrx and Bank of China Ltd H
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Inhibrx and Bank is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and Bank of China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of China Ltd H 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 Bank of China Ltd H. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of China Ltd H has no effect on the direction of Inhibrx i.e., Inhibrx and Bank of China Ltd H go up and down completely randomly.
Pair Corralation between Inhibrx and Bank of China Ltd H
Given the investment horizon of 90 days Inhibrx is expected to generate 15.49 times less return on investment than Bank of China Ltd H. But when comparing it to its historical volatility, Inhibrx is 1.02 times less risky than Bank of China Ltd H. It trades about 0.0 of its potential returns per unit of risk. Bank of China is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 33.00 in Bank of China on August 31, 2024 and sell it today you would earn a total of 17.00 from holding Bank of China or generate 51.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inhibrx vs. Bank of China
Performance |
| Timeline |
| Inhibrx |
| Bank of China Ltd H |
Inhibrx and Bank of China Ltd H Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inhibrx and Bank of China Ltd H
The main advantage of trading using opposite Inhibrx and Bank of China Ltd H positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inhibrx position performs unexpectedly, Bank of China Ltd H 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 Bank of China Ltd H will offset losses from the drop in Bank of China Ltd H's long position.| Inhibrx vs. Crinetics Pharmaceuticals | Inhibrx vs. Merus BV | Inhibrx vs. Lyell Immunopharma | Inhibrx vs. Kronos Bio |
| Bank of China Ltd H vs. Bank of America | Bank of China Ltd H vs. Bank of America | Bank of China Ltd H vs. Bank of America | Bank of China Ltd H vs. China Construction Bank |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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