Correlation Between Inhibrx and Evaxion Biotech
Can any of the company-specific risk be diversified away by investing in both Inhibrx and Evaxion Biotech 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 Evaxion Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inhibrx and Evaxion Biotech AS, you can compare the effects of market volatilities on Inhibrx and Evaxion Biotech 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 Evaxion Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inhibrx and Evaxion Biotech.
Diversification Opportunities for Inhibrx and Evaxion Biotech
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Inhibrx and Evaxion is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and Evaxion Biotech AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evaxion Biotech AS 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 Evaxion Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evaxion Biotech AS has no effect on the direction of Inhibrx i.e., Inhibrx and Evaxion Biotech go up and down completely randomly.
Pair Corralation between Inhibrx and Evaxion Biotech
Given the investment horizon of 90 days Inhibrx is expected to generate 0.5 times more return on investment than Evaxion Biotech. However, Inhibrx is 2.01 times less risky than Evaxion Biotech. It trades about -0.01 of its potential returns per unit of risk. Evaxion Biotech AS is currently generating about -0.02 per unit of risk. If you would invest 2,497 in Inhibrx on September 3, 2024 and sell it today you would lose (989.00) from holding Inhibrx or give up 39.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inhibrx vs. Evaxion Biotech AS
Performance |
| Timeline |
| Inhibrx |
| Evaxion Biotech AS |
Inhibrx and Evaxion Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inhibrx and Evaxion Biotech
The main advantage of trading using opposite Inhibrx and Evaxion Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inhibrx position performs unexpectedly, Evaxion Biotech 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 Evaxion Biotech will offset losses from the drop in Evaxion Biotech's long position.| Inhibrx vs. DiaMedica Therapeutics | Inhibrx vs. Lyra Therapeutics | Inhibrx vs. Centessa Pharmaceuticals PLC |
| Evaxion Biotech vs. DiaMedica Therapeutics | Evaxion Biotech vs. Lyra Therapeutics | Evaxion Biotech vs. Centessa Pharmaceuticals PLC |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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