Correlation Between Inhibrx and Stoke Therapeutics
Can any of the company-specific risk be diversified away by investing in both Inhibrx and Stoke 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 Stoke Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inhibrx and Stoke Therapeutics, you can compare the effects of market volatilities on Inhibrx and Stoke 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 Stoke Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inhibrx and Stoke Therapeutics.
Diversification Opportunities for Inhibrx and Stoke Therapeutics
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Inhibrx and Stoke is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and Stoke Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stoke Therapeutics 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 Stoke Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stoke Therapeutics has no effect on the direction of Inhibrx i.e., Inhibrx and Stoke Therapeutics go up and down completely randomly.
Pair Corralation between Inhibrx and Stoke Therapeutics
Given the investment horizon of 90 days Inhibrx is expected to generate 20.72 times less return on investment than Stoke Therapeutics. But when comparing it to its historical volatility, Inhibrx is 1.28 times less risky than Stoke Therapeutics. It trades about 0.01 of its potential returns per unit of risk. Stoke Therapeutics is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 936.00 in Stoke Therapeutics on November 18, 2024 and sell it today you would earn a total of 132.00 from holding Stoke Therapeutics or generate 14.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inhibrx vs. Stoke Therapeutics
Performance |
| Timeline |
| Inhibrx |
| Stoke Therapeutics |
Inhibrx and Stoke Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inhibrx and Stoke Therapeutics
The main advantage of trading using opposite Inhibrx and Stoke Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inhibrx position performs unexpectedly, Stoke 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 Stoke Therapeutics will offset losses from the drop in Stoke Therapeutics' long position.| Inhibrx vs. Crinetics Pharmaceuticals | Inhibrx vs. Merus BV | Inhibrx vs. Lyell Immunopharma | Inhibrx vs. Kronos Bio |
| Stoke Therapeutics vs. Adaptimmune Therapeutics Plc | Stoke Therapeutics vs. Black Diamond Therapeutics | Stoke Therapeutics vs. Relay Therapeutics | Stoke Therapeutics vs. Pliant 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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