Correlation Between Inhibrx and Meiwu Technology
Can any of the company-specific risk be diversified away by investing in both Inhibrx and Meiwu Technology 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 Meiwu Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inhibrx and Meiwu Technology Co, you can compare the effects of market volatilities on Inhibrx and Meiwu Technology 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 Meiwu Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inhibrx and Meiwu Technology.
Diversification Opportunities for Inhibrx and Meiwu Technology
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Inhibrx and Meiwu is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and Meiwu Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meiwu Technology 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 Meiwu Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meiwu Technology has no effect on the direction of Inhibrx i.e., Inhibrx and Meiwu Technology go up and down completely randomly.
Pair Corralation between Inhibrx and Meiwu Technology
Given the investment horizon of 90 days Inhibrx is expected to generate 0.28 times more return on investment than Meiwu Technology. However, Inhibrx is 3.62 times less risky than Meiwu Technology. It trades about -0.03 of its potential returns per unit of risk. Meiwu Technology Co is currently generating about -0.02 per unit of risk. If you would invest 1,456 in Inhibrx on November 28, 2024 and sell it today you would lose (224.00) from holding Inhibrx or give up 15.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inhibrx vs. Meiwu Technology Co
Performance |
| Timeline |
| Inhibrx |
| Meiwu Technology |
Inhibrx and Meiwu Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inhibrx and Meiwu Technology
The main advantage of trading using opposite Inhibrx and Meiwu Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inhibrx position performs unexpectedly, Meiwu Technology 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 Meiwu Technology will offset losses from the drop in Meiwu Technology's long position.| Inhibrx vs. Crinetics Pharmaceuticals | Inhibrx vs. Merus BV | Inhibrx vs. Lyell Immunopharma | Inhibrx vs. Kronos Bio |
| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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