Correlation Between Inhibrx and Sana Biotechnology
Can any of the company-specific risk be diversified away by investing in both Inhibrx and Sana Biotechnology 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 Sana Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inhibrx and Sana Biotechnology, you can compare the effects of market volatilities on Inhibrx and Sana Biotechnology 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 Sana Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inhibrx and Sana Biotechnology.
Diversification Opportunities for Inhibrx and Sana Biotechnology
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Inhibrx and Sana is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and Sana Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sana Biotechnology 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 Sana Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sana Biotechnology has no effect on the direction of Inhibrx i.e., Inhibrx and Sana Biotechnology go up and down completely randomly.
Pair Corralation between Inhibrx and Sana Biotechnology
Given the investment horizon of 90 days Inhibrx is expected to generate 0.63 times more return on investment than Sana Biotechnology. However, Inhibrx is 1.58 times less risky than Sana Biotechnology. It trades about 0.01 of its potential returns per unit of risk. Sana Biotechnology is currently generating about -0.24 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inhibrx vs. Sana Biotechnology
Performance |
| Timeline |
| Inhibrx |
| Sana Biotechnology |
Inhibrx and Sana Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inhibrx and Sana Biotechnology
The main advantage of trading using opposite Inhibrx and Sana Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inhibrx position performs unexpectedly, Sana Biotechnology 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 Sana Biotechnology will offset losses from the drop in Sana Biotechnology's long position.| Inhibrx vs. Crinetics Pharmaceuticals | Inhibrx vs. Merus BV | Inhibrx vs. Lyell Immunopharma | Inhibrx vs. Kronos Bio |
| Sana Biotechnology vs. Cue Biopharma | Sana Biotechnology vs. Eliem Therapeutics | Sana Biotechnology vs. Inhibrx | Sana Biotechnology 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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