Correlation Between Keros Therapeutics and Inhibrx
Can any of the company-specific risk be diversified away by investing in both Keros Therapeutics and Inhibrx 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 Keros Therapeutics and Inhibrx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Keros Therapeutics and Inhibrx, you can compare the effects of market volatilities on Keros Therapeutics and Inhibrx 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 Keros Therapeutics with a short position of Inhibrx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keros Therapeutics and Inhibrx.
Diversification Opportunities for Keros Therapeutics and Inhibrx
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Keros and Inhibrx is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Keros Therapeutics and Inhibrx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inhibrx and Keros Therapeutics 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 Keros Therapeutics are associated (or correlated) with Inhibrx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inhibrx has no effect on the direction of Keros Therapeutics i.e., Keros Therapeutics and Inhibrx go up and down completely randomly.
Pair Corralation between Keros Therapeutics and Inhibrx
Given the investment horizon of 90 days Keros Therapeutics is expected to under-perform the Inhibrx. In addition to that, Keros Therapeutics is 3.96 times more volatile than Inhibrx. It trades about -0.18 of its total potential returns per unit of risk. Inhibrx is currently generating about -0.09 per unit of volatility. If you would invest 1,486 in Inhibrx on October 26, 2024 and sell it today you would lose (184.00) from holding Inhibrx or give up 12.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keros Therapeutics vs. Inhibrx
Performance |
| Timeline |
| Keros Therapeutics |
| Inhibrx |
Keros Therapeutics and Inhibrx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keros Therapeutics and Inhibrx
The main advantage of trading using opposite Keros Therapeutics and Inhibrx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keros Therapeutics position performs unexpectedly, Inhibrx 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 Inhibrx will offset losses from the drop in Inhibrx's long position.| Keros Therapeutics vs. Ideaya Biosciences | Keros Therapeutics vs. AnaptysBio | Keros Therapeutics vs. MeiraGTx Holdings PLC | Keros Therapeutics vs. Janux Therapeutics |
| Inhibrx vs. Crinetics Pharmaceuticals | Inhibrx vs. Merus BV | Inhibrx vs. Lyell Immunopharma | Inhibrx vs. Kronos Bio |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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