Correlation Between Inhibrx and 4D Molecular
Can any of the company-specific risk be diversified away by investing in both Inhibrx and 4D Molecular 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 4D Molecular into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inhibrx and 4D Molecular Therapeutics, you can compare the effects of market volatilities on Inhibrx and 4D Molecular 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 4D Molecular. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inhibrx and 4D Molecular.
Diversification Opportunities for Inhibrx and 4D Molecular
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Inhibrx and FDMT is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and 4D Molecular Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 4D Molecular Therapeutics 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 4D Molecular. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 4D Molecular Therapeutics has no effect on the direction of Inhibrx i.e., Inhibrx and 4D Molecular go up and down completely randomly.
Pair Corralation between Inhibrx and 4D Molecular
Given the investment horizon of 90 days Inhibrx is expected to under-perform the 4D Molecular. But the stock apears to be less risky and, when comparing its historical volatility, Inhibrx is 1.1 times less risky than 4D Molecular. The stock trades about -0.05 of its potential returns per unit of risk. The 4D Molecular Therapeutics is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 801.00 in 4D Molecular Therapeutics on September 1, 2024 and sell it today you would lose (17.00) from holding 4D Molecular Therapeutics or give up 2.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inhibrx vs. 4D Molecular Therapeutics
Performance |
| Timeline |
| Inhibrx |
| 4D Molecular Therapeutics |
Inhibrx and 4D Molecular Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inhibrx and 4D Molecular
The main advantage of trading using opposite Inhibrx and 4D Molecular positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inhibrx position performs unexpectedly, 4D Molecular 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 4D Molecular will offset losses from the drop in 4D Molecular's long position.| Inhibrx vs. Crinetics Pharmaceuticals | Inhibrx vs. Merus BV | Inhibrx vs. Lyell Immunopharma | Inhibrx vs. Kronos Bio |
| 4D Molecular vs. Tff Pharmaceuticals | 4D Molecular vs. Eliem Therapeutics | 4D Molecular vs. Inhibrx | 4D Molecular 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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