Correlation Between Inhibrx and SAB Biotherapeutics
Can any of the company-specific risk be diversified away by investing in both Inhibrx and SAB Biotherapeutics 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 SAB Biotherapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inhibrx and SAB Biotherapeutics, you can compare the effects of market volatilities on Inhibrx and SAB Biotherapeutics 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 SAB Biotherapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inhibrx and SAB Biotherapeutics.
Diversification Opportunities for Inhibrx and SAB Biotherapeutics
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Inhibrx and SAB is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and SAB Biotherapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAB Biotherapeutics 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 SAB Biotherapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAB Biotherapeutics has no effect on the direction of Inhibrx i.e., Inhibrx and SAB Biotherapeutics go up and down completely randomly.
Pair Corralation between Inhibrx and SAB Biotherapeutics
Given the investment horizon of 90 days Inhibrx is expected to generate 0.82 times more return on investment than SAB Biotherapeutics. However, Inhibrx is 1.22 times less risky than SAB Biotherapeutics. It trades about 0.0 of its potential returns per unit of risk. SAB Biotherapeutics is currently generating about -0.02 per unit of risk. If you would invest 2,457 in Inhibrx on August 31, 2024 and sell it today you would lose (931.00) from holding Inhibrx or give up 37.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inhibrx vs. SAB Biotherapeutics
Performance |
| Timeline |
| Inhibrx |
| SAB Biotherapeutics |
Inhibrx and SAB Biotherapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inhibrx and SAB Biotherapeutics
The main advantage of trading using opposite Inhibrx and SAB Biotherapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inhibrx position performs unexpectedly, SAB Biotherapeutics 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 SAB Biotherapeutics will offset losses from the drop in SAB Biotherapeutics' long position.| Inhibrx vs. Crinetics Pharmaceuticals | Inhibrx vs. Merus BV | Inhibrx vs. Lyell Immunopharma | Inhibrx vs. Kronos Bio |
| SAB Biotherapeutics vs. Processa Pharmaceuticals | SAB Biotherapeutics vs. Third Harmonic Bio | SAB Biotherapeutics vs. Cingulate Warrants | SAB Biotherapeutics vs. Anebulo Pharmaceuticals |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |