Correlation Between Inhibrx and Xenetic Biosciences
Can any of the company-specific risk be diversified away by investing in both Inhibrx and Xenetic Biosciences 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 Xenetic Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inhibrx and Xenetic Biosciences, you can compare the effects of market volatilities on Inhibrx and Xenetic Biosciences 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 Xenetic Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inhibrx and Xenetic Biosciences.
Diversification Opportunities for Inhibrx and Xenetic Biosciences
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Inhibrx and Xenetic is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and Xenetic Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xenetic Biosciences 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 Xenetic Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xenetic Biosciences has no effect on the direction of Inhibrx i.e., Inhibrx and Xenetic Biosciences go up and down completely randomly.
Pair Corralation between Inhibrx and Xenetic Biosciences
Given the investment horizon of 90 days Inhibrx is expected to under-perform the Xenetic Biosciences. But the stock apears to be less risky and, when comparing its historical volatility, Inhibrx is 1.5 times less risky than Xenetic Biosciences. The stock trades about -0.04 of its potential returns per unit of risk. The Xenetic Biosciences is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 428.00 in Xenetic Biosciences on August 31, 2024 and sell it today you would lose (8.00) from holding Xenetic Biosciences or give up 1.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inhibrx vs. Xenetic Biosciences
Performance |
| Timeline |
| Inhibrx |
| Xenetic Biosciences |
Inhibrx and Xenetic Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inhibrx and Xenetic Biosciences
The main advantage of trading using opposite Inhibrx and Xenetic Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inhibrx position performs unexpectedly, Xenetic Biosciences 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 Xenetic Biosciences will offset losses from the drop in Xenetic Biosciences' long position.| Inhibrx vs. Crinetics Pharmaceuticals | Inhibrx vs. Merus BV | Inhibrx vs. Lyell Immunopharma | Inhibrx vs. Kronos Bio |
| Xenetic Biosciences vs. Cue Biopharma | Xenetic Biosciences vs. Eliem Therapeutics | Xenetic Biosciences vs. Inhibrx | Xenetic Biosciences 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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