Correlation Between Inhibrx and Lazydays Holdings
Can any of the company-specific risk be diversified away by investing in both Inhibrx and Lazydays Holdings 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 Lazydays Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inhibrx and Lazydays Holdings, you can compare the effects of market volatilities on Inhibrx and Lazydays Holdings 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 Lazydays Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inhibrx and Lazydays Holdings.
Diversification Opportunities for Inhibrx and Lazydays Holdings
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Inhibrx and Lazydays is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and Lazydays Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazydays Holdings 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 Lazydays Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazydays Holdings has no effect on the direction of Inhibrx i.e., Inhibrx and Lazydays Holdings go up and down completely randomly.
Pair Corralation between Inhibrx and Lazydays Holdings
Given the investment horizon of 90 days Inhibrx is expected to under-perform the Lazydays Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Inhibrx is 2.73 times less risky than Lazydays Holdings. The stock trades about -0.1 of its potential returns per unit of risk. The Lazydays Holdings is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 114.00 in Lazydays Holdings on August 28, 2024 and sell it today you would lose (15.00) from holding Lazydays Holdings or give up 13.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inhibrx vs. Lazydays Holdings
Performance |
| Timeline |
| Inhibrx |
| Lazydays Holdings |
Inhibrx and Lazydays Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inhibrx and Lazydays Holdings
The main advantage of trading using opposite Inhibrx and Lazydays Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inhibrx position performs unexpectedly, Lazydays Holdings 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 Lazydays Holdings will offset losses from the drop in Lazydays Holdings' long position.| Inhibrx vs. Crinetics Pharmaceuticals | Inhibrx vs. Merus BV | Inhibrx vs. Lyell Immunopharma | Inhibrx vs. Kronos Bio |
| Lazydays Holdings vs. Hertz Global Holdings | Lazydays Holdings vs. Inhibrx | Lazydays Holdings vs. Mind Medicine | Lazydays Holdings vs. HE Equipment Services |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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