Correlation Between Inhibrx and PacifiCorp
Can any of the company-specific risk be diversified away by investing in both Inhibrx and PacifiCorp 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 PacifiCorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inhibrx and PacifiCorp, you can compare the effects of market volatilities on Inhibrx and PacifiCorp 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 PacifiCorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inhibrx and PacifiCorp.
Diversification Opportunities for Inhibrx and PacifiCorp
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Inhibrx and PacifiCorp is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and PacifiCorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PacifiCorp 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 PacifiCorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PacifiCorp has no effect on the direction of Inhibrx i.e., Inhibrx and PacifiCorp go up and down completely randomly.
Pair Corralation between Inhibrx and PacifiCorp
Given the investment horizon of 90 days Inhibrx is expected to under-perform the PacifiCorp. But the stock apears to be less risky and, when comparing its historical volatility, Inhibrx is 3.2 times less risky than PacifiCorp. The stock trades about -0.18 of its potential returns per unit of risk. The PacifiCorp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 18,000 in PacifiCorp on November 4, 2024 and sell it today you would earn a total of 1,500 from holding PacifiCorp or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inhibrx vs. PacifiCorp
Performance |
| Timeline |
| Inhibrx |
| PacifiCorp |
Inhibrx and PacifiCorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inhibrx and PacifiCorp
The main advantage of trading using opposite Inhibrx and PacifiCorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inhibrx position performs unexpectedly, PacifiCorp 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 PacifiCorp will offset losses from the drop in PacifiCorp's long position.| Inhibrx vs. Crinetics Pharmaceuticals | Inhibrx vs. Merus BV | Inhibrx vs. Lyell Immunopharma | Inhibrx vs. Kronos Bio |
| PacifiCorp vs. Global Net Lease | PacifiCorp vs. Toro | PacifiCorp vs. Yuexiu Transport Infrastructure | PacifiCorp vs. McGrath RentCorp |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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