Correlation Between Inhibrx and Cytokinetics
Can any of the company-specific risk be diversified away by investing in both Inhibrx and Cytokinetics 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 Cytokinetics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inhibrx and Cytokinetics, you can compare the effects of market volatilities on Inhibrx and Cytokinetics 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 Cytokinetics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inhibrx and Cytokinetics.
Diversification Opportunities for Inhibrx and Cytokinetics
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Inhibrx and Cytokinetics is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and Cytokinetics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytokinetics 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 Cytokinetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cytokinetics has no effect on the direction of Inhibrx i.e., Inhibrx and Cytokinetics go up and down completely randomly.
Pair Corralation between Inhibrx and Cytokinetics
Given the investment horizon of 90 days Inhibrx is expected to under-perform the Cytokinetics. In addition to that, Inhibrx is 1.96 times more volatile than Cytokinetics. It trades about -0.11 of its total potential returns per unit of risk. Cytokinetics is currently generating about 0.06 per unit of volatility. If you would invest 4,893 in Cytokinetics on November 2, 2024 and sell it today you would earn a total of 104.00 from holding Cytokinetics or generate 2.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inhibrx vs. Cytokinetics
Performance |
| Timeline |
| Inhibrx |
| Cytokinetics |
Inhibrx and Cytokinetics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inhibrx and Cytokinetics
The main advantage of trading using opposite Inhibrx and Cytokinetics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inhibrx position performs unexpectedly, Cytokinetics 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 Cytokinetics will offset losses from the drop in Cytokinetics' long position.| Inhibrx vs. Crinetics Pharmaceuticals | Inhibrx vs. Merus BV | Inhibrx vs. Lyell Immunopharma | Inhibrx vs. Kronos Bio |
| Cytokinetics vs. Edgewise Therapeutics | Cytokinetics vs. Dyne Therapeutics | Cytokinetics vs. Stoke Therapeutics | Cytokinetics vs. Pliant Therapeutics |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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