Correlation Between Inhibrx and Valneva SE
Can any of the company-specific risk be diversified away by investing in both Inhibrx and Valneva SE 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 Valneva SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inhibrx and Valneva SE ADR, you can compare the effects of market volatilities on Inhibrx and Valneva SE 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 Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inhibrx and Valneva SE.
Diversification Opportunities for Inhibrx and Valneva SE
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Inhibrx and Valneva is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and Valneva SE ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valneva SE ADR 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 Valneva SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valneva SE ADR has no effect on the direction of Inhibrx i.e., Inhibrx and Valneva SE go up and down completely randomly.
Pair Corralation between Inhibrx and Valneva SE
Given the investment horizon of 90 days Inhibrx is expected to generate 1.15 times more return on investment than Valneva SE. However, Inhibrx is 1.15 times more volatile than Valneva SE ADR. It trades about -0.09 of its potential returns per unit of risk. Valneva SE ADR is currently generating about -0.57 per unit of risk. If you would invest 1,600 in Inhibrx on August 28, 2024 and sell it today you would lose (114.00) from holding Inhibrx or give up 7.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inhibrx vs. Valneva SE ADR
Performance |
| Timeline |
| Inhibrx |
| Valneva SE ADR |
Inhibrx and Valneva SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inhibrx and Valneva SE
The main advantage of trading using opposite Inhibrx and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inhibrx position performs unexpectedly, Valneva SE 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 Valneva SE will offset losses from the drop in Valneva SE's long position.| Inhibrx vs. Eliem Therapeutics | Inhibrx vs. HCW Biologics | Inhibrx vs. Scpharmaceuticals | Inhibrx vs. Milestone Pharmaceuticals |
| Valneva SE vs. Eliem Therapeutics | Valneva SE vs. HCW Biologics | Valneva SE vs. Scpharmaceuticals | Valneva SE vs. Milestone 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |