Correlation Between Inhibrx and DBV Technologies
Can any of the company-specific risk be diversified away by investing in both Inhibrx and DBV Technologies 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 DBV Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inhibrx and DBV Technologies, you can compare the effects of market volatilities on Inhibrx and DBV Technologies 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 DBV Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inhibrx and DBV Technologies.
Diversification Opportunities for Inhibrx and DBV Technologies
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Inhibrx and DBV is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and DBV Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DBV Technologies 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 DBV Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DBV Technologies has no effect on the direction of Inhibrx i.e., Inhibrx and DBV Technologies go up and down completely randomly.
Pair Corralation between Inhibrx and DBV Technologies
Given the investment horizon of 90 days Inhibrx is expected to generate 1.06 times more return on investment than DBV Technologies. However, Inhibrx is 1.06 times more volatile than DBV Technologies. It trades about -0.01 of its potential returns per unit of risk. DBV Technologies is currently generating about -0.04 per unit of risk. If you would invest 2,536 in Inhibrx on September 2, 2024 and sell it today you would lose (1,010) from holding Inhibrx or give up 39.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inhibrx vs. DBV Technologies
Performance |
| Timeline |
| Inhibrx |
| DBV Technologies |
Inhibrx and DBV Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inhibrx and DBV Technologies
The main advantage of trading using opposite Inhibrx and DBV Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inhibrx position performs unexpectedly, DBV Technologies 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 DBV Technologies will offset losses from the drop in DBV Technologies' long position.| Inhibrx vs. Crinetics Pharmaceuticals | Inhibrx vs. Merus BV | Inhibrx vs. Lyell Immunopharma | Inhibrx vs. Kronos Bio |
| DBV Technologies vs. Oric Pharmaceuticals | DBV Technologies vs. Lyra Therapeutics | DBV Technologies vs. Inhibrx | DBV Technologies vs. ESSA Pharma |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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