Correlation Between Inhibrx and Marimed
Can any of the company-specific risk be diversified away by investing in both Inhibrx and Marimed 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 Marimed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inhibrx and Marimed, you can compare the effects of market volatilities on Inhibrx and Marimed 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 Marimed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inhibrx and Marimed.
Diversification Opportunities for Inhibrx and Marimed
Good diversification
The 3 months correlation between Inhibrx and Marimed is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and Marimed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marimed 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 Marimed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marimed has no effect on the direction of Inhibrx i.e., Inhibrx and Marimed go up and down completely randomly.
Pair Corralation between Inhibrx and Marimed
Given the investment horizon of 90 days Inhibrx is expected to generate 0.48 times more return on investment than Marimed. However, Inhibrx is 2.07 times less risky than Marimed. It trades about 0.01 of its potential returns per unit of risk. Marimed is currently generating about -0.02 per unit of risk. If you would invest 1,566 in Inhibrx on August 31, 2024 and sell it today you would lose (3.00) from holding Inhibrx or give up 0.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inhibrx vs. Marimed
Performance |
| Timeline |
| Inhibrx |
| Marimed |
Inhibrx and Marimed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inhibrx and Marimed
The main advantage of trading using opposite Inhibrx and Marimed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inhibrx position performs unexpectedly, Marimed 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 Marimed will offset losses from the drop in Marimed's long position.| Inhibrx vs. Crinetics Pharmaceuticals | Inhibrx vs. Merus BV | Inhibrx vs. Lyell Immunopharma | Inhibrx vs. Kronos Bio |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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