Correlation Between Inhibrx and VistaGen Therapeutics
Can any of the company-specific risk be diversified away by investing in both Inhibrx and VistaGen 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 VistaGen Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inhibrx and VistaGen Therapeutics, you can compare the effects of market volatilities on Inhibrx and VistaGen 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 VistaGen Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inhibrx and VistaGen Therapeutics.
Diversification Opportunities for Inhibrx and VistaGen Therapeutics
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Inhibrx and VistaGen is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and VistaGen Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VistaGen 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 VistaGen Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VistaGen Therapeutics has no effect on the direction of Inhibrx i.e., Inhibrx and VistaGen Therapeutics go up and down completely randomly.
Pair Corralation between Inhibrx and VistaGen Therapeutics
Given the investment horizon of 90 days Inhibrx is expected to generate 1.43 times more return on investment than VistaGen Therapeutics. However, Inhibrx is 1.43 times more volatile than VistaGen Therapeutics. It trades about -0.01 of its potential returns per unit of risk. VistaGen Therapeutics is currently generating about -0.05 per unit of risk. If you would invest 2,536 in Inhibrx on September 2, 2024 and sell it today you would lose (1,010) from holding Inhibrx or give up 39.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inhibrx vs. VistaGen Therapeutics
Performance |
| Timeline |
| Inhibrx |
| VistaGen Therapeutics |
Inhibrx and VistaGen Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inhibrx and VistaGen Therapeutics
The main advantage of trading using opposite Inhibrx and VistaGen Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inhibrx position performs unexpectedly, VistaGen 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 VistaGen Therapeutics will offset losses from the drop in VistaGen Therapeutics' long position.| Inhibrx vs. Crinetics Pharmaceuticals | Inhibrx vs. Merus BV | Inhibrx vs. Lyell Immunopharma | Inhibrx vs. Kronos Bio |
| VistaGen Therapeutics vs. Tff Pharmaceuticals | VistaGen Therapeutics vs. Eliem Therapeutics | VistaGen Therapeutics vs. Inhibrx | VistaGen Therapeutics 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 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.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |