Correlation Between Inhibrx and NewAmsterdam Pharma
Can any of the company-specific risk be diversified away by investing in both Inhibrx and NewAmsterdam Pharma 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 NewAmsterdam Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inhibrx and NewAmsterdam Pharma, you can compare the effects of market volatilities on Inhibrx and NewAmsterdam Pharma 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 NewAmsterdam Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inhibrx and NewAmsterdam Pharma.
Diversification Opportunities for Inhibrx and NewAmsterdam Pharma
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Inhibrx and NewAmsterdam is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and NewAmsterdam Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NewAmsterdam Pharma 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 NewAmsterdam Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NewAmsterdam Pharma has no effect on the direction of Inhibrx i.e., Inhibrx and NewAmsterdam Pharma go up and down completely randomly.
Pair Corralation between Inhibrx and NewAmsterdam Pharma
Given the investment horizon of 90 days Inhibrx is expected to generate 18.68 times less return on investment than NewAmsterdam Pharma. But when comparing it to its historical volatility, Inhibrx is 1.51 times less risky than NewAmsterdam Pharma. It trades about 0.01 of its potential returns per unit of risk. NewAmsterdam Pharma is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,660 in NewAmsterdam Pharma on August 31, 2024 and sell it today you would earn a total of 420.00 from holding NewAmsterdam Pharma or generate 25.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inhibrx vs. NewAmsterdam Pharma
Performance |
| Timeline |
| Inhibrx |
| NewAmsterdam Pharma |
Inhibrx and NewAmsterdam Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inhibrx and NewAmsterdam Pharma
The main advantage of trading using opposite Inhibrx and NewAmsterdam Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inhibrx position performs unexpectedly, NewAmsterdam Pharma 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 NewAmsterdam Pharma will offset losses from the drop in NewAmsterdam Pharma's long position.| Inhibrx vs. Crinetics Pharmaceuticals | Inhibrx vs. Merus BV | Inhibrx vs. Lyell Immunopharma | Inhibrx vs. Kronos Bio |
| NewAmsterdam Pharma vs. Cue Biopharma | NewAmsterdam Pharma vs. Eliem Therapeutics | NewAmsterdam Pharma vs. Inhibrx | NewAmsterdam Pharma vs. Molecular Partners AG |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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