Correlation Between Inhibrx and Genmab AS
Can any of the company-specific risk be diversified away by investing in both Inhibrx and Genmab AS 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 Genmab AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inhibrx and Genmab AS, you can compare the effects of market volatilities on Inhibrx and Genmab AS 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 Genmab AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inhibrx and Genmab AS.
Diversification Opportunities for Inhibrx and Genmab AS
Modest diversification
The 3 months correlation between Inhibrx and Genmab is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and Genmab AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genmab 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 Genmab AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genmab AS has no effect on the direction of Inhibrx i.e., Inhibrx and Genmab AS go up and down completely randomly.
Pair Corralation between Inhibrx and Genmab AS
Given the investment horizon of 90 days Inhibrx is expected to under-perform the Genmab AS. In addition to that, Inhibrx is 3.28 times more volatile than Genmab AS. It trades about -0.04 of its total potential returns per unit of risk. Genmab AS is currently generating about -0.1 per unit of volatility. If you would invest 2,986 in Genmab AS on September 3, 2024 and sell it today you would lose (836.00) from holding Genmab AS or give up 28.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inhibrx vs. Genmab AS
Performance |
| Timeline |
| Inhibrx |
| Genmab AS |
Inhibrx and Genmab AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inhibrx and Genmab AS
The main advantage of trading using opposite Inhibrx and Genmab AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inhibrx position performs unexpectedly, Genmab AS 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 Genmab AS will offset losses from the drop in Genmab AS's long position.| Inhibrx vs. DiaMedica Therapeutics | Inhibrx vs. Lyra Therapeutics | Inhibrx vs. Centessa Pharmaceuticals PLC |
| Genmab AS vs. DiaMedica Therapeutics | Genmab AS vs. Lyra Therapeutics | Genmab AS 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 CEOs Directory module to screen CEOs from public companies around the world.
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