Correlation Between Inhibrx and Silence Therapeutics
Can any of the company-specific risk be diversified away by investing in both Inhibrx and Silence Therapeutics 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 Silence Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inhibrx and Silence Therapeutics PLC, you can compare the effects of market volatilities on Inhibrx and Silence Therapeutics 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 Silence Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inhibrx and Silence Therapeutics.
Diversification Opportunities for Inhibrx and Silence Therapeutics
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Inhibrx and Silence is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and Silence Therapeutics PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silence Therapeutics PLC 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 Silence Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silence Therapeutics PLC has no effect on the direction of Inhibrx i.e., Inhibrx and Silence Therapeutics go up and down completely randomly.
Pair Corralation between Inhibrx and Silence Therapeutics
Given the investment horizon of 90 days Inhibrx is expected to generate 0.89 times more return on investment than Silence Therapeutics. However, Inhibrx is 1.13 times less risky than Silence Therapeutics. It trades about 0.01 of its potential returns per unit of risk. Silence Therapeutics PLC is currently generating about 0.0 per unit of risk. If you would invest 2,303 in Inhibrx on August 31, 2024 and sell it today you would lose (777.00) from holding Inhibrx or give up 33.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Inhibrx vs. Silence Therapeutics PLC
Performance |
| Timeline |
| Inhibrx |
| Silence Therapeutics PLC |
Inhibrx and Silence Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inhibrx and Silence Therapeutics
The main advantage of trading using opposite Inhibrx and Silence Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inhibrx position performs unexpectedly, Silence Therapeutics 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 Silence Therapeutics will offset losses from the drop in Silence Therapeutics' long position.| Inhibrx vs. Crinetics Pharmaceuticals | Inhibrx vs. Merus BV | Inhibrx vs. Lyell Immunopharma | Inhibrx vs. Kronos Bio |
| Silence Therapeutics vs. Cue Biopharma | Silence Therapeutics vs. Eliem Therapeutics | Silence Therapeutics vs. Inhibrx | Silence Therapeutics 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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