Correlation Between Inhibrx and McDonalds
Can any of the company-specific risk be diversified away by investing in both Inhibrx and McDonalds 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 McDonalds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inhibrx and McDonalds, you can compare the effects of market volatilities on Inhibrx and McDonalds 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 McDonalds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inhibrx and McDonalds.
Diversification Opportunities for Inhibrx and McDonalds
Very weak diversification
The 3 months correlation between Inhibrx and McDonalds is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and McDonalds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McDonalds 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 McDonalds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of McDonalds has no effect on the direction of Inhibrx i.e., Inhibrx and McDonalds go up and down completely randomly.
Pair Corralation between Inhibrx and McDonalds
Given the investment horizon of 90 days Inhibrx is expected to under-perform the McDonalds. In addition to that, Inhibrx is 4.68 times more volatile than McDonalds. It trades about -0.14 of its total potential returns per unit of risk. McDonalds is currently generating about 0.14 per unit of volatility. If you would invest 28,690 in McDonalds on November 9, 2024 and sell it today you would earn a total of 746.00 from holding McDonalds or generate 2.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inhibrx vs. McDonalds
Performance |
| Timeline |
| Inhibrx |
| McDonalds |
Inhibrx and McDonalds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inhibrx and McDonalds
The main advantage of trading using opposite Inhibrx and McDonalds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inhibrx position performs unexpectedly, McDonalds 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 McDonalds will offset losses from the drop in McDonalds' long position.| Inhibrx vs. Crinetics Pharmaceuticals | Inhibrx vs. Merus BV | Inhibrx vs. Lyell Immunopharma | Inhibrx vs. Kronos Bio |
| McDonalds vs. Chipotle Mexican Grill | McDonalds vs. Dutch Bros | McDonalds vs. Dominos Pizza Common | McDonalds vs. Yum Brands |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |