Correlation Between Inhibrx and Gossamer Bio
Can any of the company-specific risk be diversified away by investing in both Inhibrx and Gossamer Bio 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 Gossamer Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inhibrx and Gossamer Bio, you can compare the effects of market volatilities on Inhibrx and Gossamer Bio 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 Gossamer Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inhibrx and Gossamer Bio.
Diversification Opportunities for Inhibrx and Gossamer Bio
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Inhibrx and Gossamer is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and Gossamer Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gossamer Bio 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 Gossamer Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gossamer Bio has no effect on the direction of Inhibrx i.e., Inhibrx and Gossamer Bio go up and down completely randomly.
Pair Corralation between Inhibrx and Gossamer Bio
Given the investment horizon of 90 days Inhibrx is expected to under-perform the Gossamer Bio. But the stock apears to be less risky and, when comparing its historical volatility, Inhibrx is 1.49 times less risky than Gossamer Bio. The stock trades about -0.01 of its potential returns per unit of risk. The Gossamer Bio is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 56.00 in Gossamer Bio on September 2, 2024 and sell it today you would earn a total of 14.00 from holding Gossamer Bio or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inhibrx vs. Gossamer Bio
Performance |
| Timeline |
| Inhibrx |
| Gossamer Bio |
Inhibrx and Gossamer Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inhibrx and Gossamer Bio
The main advantage of trading using opposite Inhibrx and Gossamer Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inhibrx position performs unexpectedly, Gossamer Bio 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 Gossamer Bio will offset losses from the drop in Gossamer Bio's long position.| Inhibrx vs. Crinetics Pharmaceuticals | Inhibrx vs. Merus BV | Inhibrx vs. Lyell Immunopharma | Inhibrx vs. Kronos Bio |
| Gossamer Bio vs. Tff Pharmaceuticals | Gossamer Bio vs. Eliem Therapeutics | Gossamer Bio vs. Inhibrx | Gossamer Bio 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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