Correlation Between Inhibrx and NETGEAR
Can any of the company-specific risk be diversified away by investing in both Inhibrx and NETGEAR 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 NETGEAR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inhibrx and NETGEAR, you can compare the effects of market volatilities on Inhibrx and NETGEAR 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 NETGEAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inhibrx and NETGEAR.
Diversification Opportunities for Inhibrx and NETGEAR
Pay attention - limited upside
The 3 months correlation between Inhibrx and NETGEAR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and NETGEAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NETGEAR 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 NETGEAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NETGEAR has no effect on the direction of Inhibrx i.e., Inhibrx and NETGEAR go up and down completely randomly.
Pair Corralation between Inhibrx and NETGEAR
Given the investment horizon of 90 days Inhibrx is expected to under-perform the NETGEAR. In addition to that, Inhibrx is 1.81 times more volatile than NETGEAR. It trades about -0.03 of its total potential returns per unit of risk. NETGEAR is currently generating about 0.21 per unit of volatility. If you would invest 2,278 in NETGEAR on September 2, 2024 and sell it today you would earn a total of 182.00 from holding NETGEAR or generate 7.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inhibrx vs. NETGEAR
Performance |
| Timeline |
| Inhibrx |
| NETGEAR |
Inhibrx and NETGEAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inhibrx and NETGEAR
The main advantage of trading using opposite Inhibrx and NETGEAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inhibrx position performs unexpectedly, NETGEAR 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 NETGEAR will offset losses from the drop in NETGEAR's long position.| Inhibrx vs. Crinetics Pharmaceuticals | Inhibrx vs. Merus BV | Inhibrx vs. Lyell Immunopharma | Inhibrx vs. Kronos Bio |
| NETGEAR vs. Comtech Telecommunications Corp | NETGEAR vs. KVH Industries | NETGEAR vs. Silicom | NETGEAR vs. Knowles Cor |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |