Correlation Between Inhibrx and Geron
Can any of the company-specific risk be diversified away by investing in both Inhibrx and Geron 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 Geron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inhibrx and Geron, you can compare the effects of market volatilities on Inhibrx and Geron 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 Geron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inhibrx and Geron.
Diversification Opportunities for Inhibrx and Geron
Weak diversification
The 3 months correlation between Inhibrx and Geron is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and Geron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geron 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 Geron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Geron has no effect on the direction of Inhibrx i.e., Inhibrx and Geron go up and down completely randomly.
Pair Corralation between Inhibrx and Geron
Given the investment horizon of 90 days Inhibrx is expected to under-perform the Geron. But the stock apears to be less risky and, when comparing its historical volatility, Inhibrx is 1.31 times less risky than Geron. The stock trades about 0.0 of its potential returns per unit of risk. The Geron is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 236.00 in Geron on September 3, 2024 and sell it today you would earn a total of 176.00 from holding Geron or generate 74.58% 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. Geron
Performance |
| Timeline |
| Inhibrx |
| Geron |
Inhibrx and Geron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inhibrx and Geron
The main advantage of trading using opposite Inhibrx and Geron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inhibrx position performs unexpectedly, Geron 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 Geron will offset losses from the drop in Geron's long position.| Inhibrx vs. DiaMedica Therapeutics | Inhibrx vs. Lyra Therapeutics | Inhibrx vs. Centessa Pharmaceuticals PLC |
| Geron vs. Viking Therapeutics | Geron vs. TG Therapeutics | Geron vs. X4 Pharmaceuticals | Geron vs. PDS Biotechnology Corp |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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