Correlation Between Inhibrx and Berkeley Lights
Can any of the company-specific risk be diversified away by investing in both Inhibrx and Berkeley Lights 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 Berkeley Lights into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inhibrx and Berkeley Lights, you can compare the effects of market volatilities on Inhibrx and Berkeley Lights 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 Berkeley Lights. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inhibrx and Berkeley Lights.
Diversification Opportunities for Inhibrx and Berkeley Lights
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Inhibrx and Berkeley is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and Berkeley Lights in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berkeley Lights 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 Berkeley Lights. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berkeley Lights has no effect on the direction of Inhibrx i.e., Inhibrx and Berkeley Lights go up and down completely randomly.
Pair Corralation between Inhibrx and Berkeley Lights
Given the investment horizon of 90 days Inhibrx is expected to generate 0.78 times more return on investment than Berkeley Lights. However, Inhibrx is 1.28 times less risky than Berkeley Lights. It trades about 0.0 of its potential returns per unit of risk. Berkeley Lights is currently generating about -0.17 per unit of risk. If you would invest 2,925 in Inhibrx on September 3, 2024 and sell it today you would lose (1,399) from holding Inhibrx or give up 47.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 13.74% |
| Values | Daily Returns |
Inhibrx vs. Berkeley Lights
Performance |
| Timeline |
| Inhibrx |
| Berkeley Lights |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Inhibrx and Berkeley Lights Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inhibrx and Berkeley Lights
The main advantage of trading using opposite Inhibrx and Berkeley Lights positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inhibrx position performs unexpectedly, Berkeley Lights 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 Berkeley Lights will offset losses from the drop in Berkeley Lights' long position.| Inhibrx vs. DiaMedica Therapeutics | Inhibrx vs. Lyra Therapeutics | Inhibrx vs. Centessa Pharmaceuticals PLC |
| Berkeley Lights vs. Genfit | Berkeley Lights vs. Corporacion America Airports | Berkeley Lights vs. Grupo Aeroportuario del | Berkeley Lights vs. Inhibrx |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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