Correlation Between Inhibrx and Sunshine Biopharma
Can any of the company-specific risk be diversified away by investing in both Inhibrx and Sunshine Biopharma 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 Sunshine Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inhibrx and Sunshine Biopharma, you can compare the effects of market volatilities on Inhibrx and Sunshine Biopharma 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 Sunshine Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inhibrx and Sunshine Biopharma.
Diversification Opportunities for Inhibrx and Sunshine Biopharma
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Inhibrx and Sunshine is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and Sunshine Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunshine Biopharma 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 Sunshine Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunshine Biopharma has no effect on the direction of Inhibrx i.e., Inhibrx and Sunshine Biopharma go up and down completely randomly.
Pair Corralation between Inhibrx and Sunshine Biopharma
Given the investment horizon of 90 days Inhibrx is expected to under-perform the Sunshine Biopharma. But the stock apears to be less risky and, when comparing its historical volatility, Inhibrx is 2.18 times less risky than Sunshine Biopharma. The stock trades about -0.03 of its potential returns per unit of risk. The Sunshine Biopharma is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 284.00 in Sunshine Biopharma on September 2, 2024 and sell it today you would earn a total of 2.00 from holding Sunshine Biopharma or generate 0.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inhibrx vs. Sunshine Biopharma
Performance |
| Timeline |
| Inhibrx |
| Sunshine Biopharma |
Inhibrx and Sunshine Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inhibrx and Sunshine Biopharma
The main advantage of trading using opposite Inhibrx and Sunshine Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inhibrx position performs unexpectedly, Sunshine Biopharma 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 Sunshine Biopharma will offset losses from the drop in Sunshine Biopharma's long position.| Inhibrx vs. Crinetics Pharmaceuticals | Inhibrx vs. Merus BV | Inhibrx vs. Lyell Immunopharma | Inhibrx vs. Kronos Bio |
| Sunshine Biopharma vs. Tff Pharmaceuticals | Sunshine Biopharma vs. Eliem Therapeutics | Sunshine Biopharma vs. Inhibrx | Sunshine Biopharma vs. Enliven Therapeutics |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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