Correlation Between Inhibrx and Federal National
Can any of the company-specific risk be diversified away by investing in both Inhibrx and Federal National 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 Federal National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inhibrx and Federal National Mortgage, you can compare the effects of market volatilities on Inhibrx and Federal National 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 Federal National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inhibrx and Federal National.
Diversification Opportunities for Inhibrx and Federal National
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Inhibrx and Federal is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and Federal National Mortgage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federal National Mortgage 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 Federal National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federal National Mortgage has no effect on the direction of Inhibrx i.e., Inhibrx and Federal National go up and down completely randomly.
Pair Corralation between Inhibrx and Federal National
Given the investment horizon of 90 days Inhibrx is expected to under-perform the Federal National. But the stock apears to be less risky and, when comparing its historical volatility, Inhibrx is 1.11 times less risky than Federal National. The stock trades about -0.04 of its potential returns per unit of risk. The Federal National Mortgage is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 124.00 in Federal National Mortgage on September 1, 2024 and sell it today you would earn a total of 189.00 from holding Federal National Mortgage or generate 152.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inhibrx vs. Federal National Mortgage
Performance |
| Timeline |
| Inhibrx |
| Federal National Mortgage |
Inhibrx and Federal National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inhibrx and Federal National
The main advantage of trading using opposite Inhibrx and Federal National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inhibrx position performs unexpectedly, Federal National 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 Federal National will offset losses from the drop in Federal National's long position.| Inhibrx vs. Crinetics Pharmaceuticals | Inhibrx vs. Merus BV | Inhibrx vs. Lyell Immunopharma | Inhibrx vs. Kronos Bio |
| Federal National vs. Inhibrx | Federal National vs. Tarsus Pharmaceuticals | Federal National vs. Procter Gamble | Federal National vs. Rocky Brands |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |