Correlation Between Inhibrx and Fortress Biotech
Can any of the company-specific risk be diversified away by investing in both Inhibrx and Fortress 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 Fortress Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inhibrx and Fortress Biotech, you can compare the effects of market volatilities on Inhibrx and Fortress 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 Fortress Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inhibrx and Fortress Biotech.
Diversification Opportunities for Inhibrx and Fortress Biotech
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Inhibrx and Fortress is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and Fortress Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortress Biotech 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 Fortress Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortress Biotech has no effect on the direction of Inhibrx i.e., Inhibrx and Fortress Biotech go up and down completely randomly.
Pair Corralation between Inhibrx and Fortress Biotech
Given the investment horizon of 90 days Inhibrx is expected to under-perform the Fortress Biotech. But the stock apears to be less risky and, when comparing its historical volatility, Inhibrx is 1.67 times less risky than Fortress Biotech. The stock trades about -0.01 of its potential returns per unit of risk. The Fortress Biotech is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 197.00 in Fortress Biotech on September 2, 2024 and sell it today you would earn a total of 16.00 from holding Fortress Biotech or generate 8.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inhibrx vs. Fortress Biotech
Performance |
| Timeline |
| Inhibrx |
| Fortress Biotech |
Inhibrx and Fortress Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inhibrx and Fortress Biotech
The main advantage of trading using opposite Inhibrx and Fortress Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inhibrx position performs unexpectedly, Fortress 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 Fortress Biotech will offset losses from the drop in Fortress Biotech's long position.| Inhibrx vs. Crinetics Pharmaceuticals | Inhibrx vs. Merus BV | Inhibrx vs. Lyell Immunopharma | Inhibrx vs. Kronos Bio |
| Fortress Biotech vs. Tff Pharmaceuticals | Fortress Biotech vs. Eliem Therapeutics | Fortress Biotech vs. Inhibrx | Fortress Biotech vs. Enliven 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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