Correlation Between Inhibrx and Inventiva
Can any of the company-specific risk be diversified away by investing in both Inhibrx and Inventiva 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 Inventiva into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inhibrx and Inventiva Sa, you can compare the effects of market volatilities on Inhibrx and Inventiva 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 Inventiva. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inhibrx and Inventiva.
Diversification Opportunities for Inhibrx and Inventiva
Good diversification
The 3 months correlation between Inhibrx and Inventiva is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and Inventiva Sa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inventiva Sa 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 Inventiva. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inventiva Sa has no effect on the direction of Inhibrx i.e., Inhibrx and Inventiva go up and down completely randomly.
Pair Corralation between Inhibrx and Inventiva
Given the investment horizon of 90 days Inhibrx is expected to generate 2.0 times more return on investment than Inventiva. However, Inhibrx is 2.0 times more volatile than Inventiva Sa. It trades about -0.03 of its potential returns per unit of risk. Inventiva Sa is currently generating about -0.1 per unit of risk. If you would invest 1,580 in Inhibrx on September 2, 2024 and sell it today you would lose (54.00) from holding Inhibrx or give up 3.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inhibrx vs. Inventiva Sa
Performance |
| Timeline |
| Inhibrx |
| Inventiva Sa |
Inhibrx and Inventiva Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inhibrx and Inventiva
The main advantage of trading using opposite Inhibrx and Inventiva positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inhibrx position performs unexpectedly, Inventiva 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 Inventiva will offset losses from the drop in Inventiva's long position.| Inhibrx vs. Crinetics Pharmaceuticals | Inhibrx vs. Merus BV | Inhibrx vs. Lyell Immunopharma | Inhibrx vs. Kronos Bio |
| Inventiva vs. Tff Pharmaceuticals | Inventiva vs. Eliem Therapeutics | Inventiva vs. Inhibrx | Inventiva 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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