Correlation Between Inhibrx and XTL Biopharmaceutica
Can any of the company-specific risk be diversified away by investing in both Inhibrx and XTL Biopharmaceutica 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 XTL Biopharmaceutica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inhibrx and XTL Biopharmaceuticals Ltd, you can compare the effects of market volatilities on Inhibrx and XTL Biopharmaceutica 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 XTL Biopharmaceutica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inhibrx and XTL Biopharmaceutica.
Diversification Opportunities for Inhibrx and XTL Biopharmaceutica
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Inhibrx and XTL is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and XTL Biopharmaceuticals Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XTL Biopharmaceuticals 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 XTL Biopharmaceutica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XTL Biopharmaceuticals has no effect on the direction of Inhibrx i.e., Inhibrx and XTL Biopharmaceutica go up and down completely randomly.
Pair Corralation between Inhibrx and XTL Biopharmaceutica
Given the investment horizon of 90 days Inhibrx is expected to generate 0.57 times more return on investment than XTL Biopharmaceutica. However, Inhibrx is 1.74 times less risky than XTL Biopharmaceutica. It trades about -0.01 of its potential returns per unit of risk. XTL Biopharmaceuticals Ltd is currently generating about -0.01 per unit of risk. If you would invest 1,689 in Inhibrx on September 3, 2024 and sell it today you would lose (163.00) from holding Inhibrx or give up 9.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inhibrx vs. XTL Biopharmaceuticals Ltd
Performance |
| Timeline |
| Inhibrx |
| XTL Biopharmaceuticals |
Inhibrx and XTL Biopharmaceutica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inhibrx and XTL Biopharmaceutica
The main advantage of trading using opposite Inhibrx and XTL Biopharmaceutica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inhibrx position performs unexpectedly, XTL Biopharmaceutica 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 XTL Biopharmaceutica will offset losses from the drop in XTL Biopharmaceutica's long position.| Inhibrx vs. DiaMedica Therapeutics | Inhibrx vs. Lyra Therapeutics | Inhibrx vs. Centessa Pharmaceuticals PLC |
| XTL Biopharmaceutica vs. DiaMedica Therapeutics | XTL Biopharmaceutica vs. Lyra Therapeutics | XTL Biopharmaceutica vs. Centessa Pharmaceuticals PLC |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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