Correlation Between Ross Stores and Inhibrx
Can any of the company-specific risk be diversified away by investing in both Ross Stores 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 Ross Stores and Inhibrx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ross Stores and Inhibrx, you can compare the effects of market volatilities on Ross Stores 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 Ross Stores with a short position of Inhibrx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ross Stores and Inhibrx.
Diversification Opportunities for Ross Stores and Inhibrx
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ross and Inhibrx is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Ross Stores and Inhibrx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inhibrx and Ross Stores 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 Ross Stores 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 Ross Stores i.e., Ross Stores and Inhibrx go up and down completely randomly.
Pair Corralation between Ross Stores and Inhibrx
Given the investment horizon of 90 days Ross Stores is expected to generate 0.29 times more return on investment than Inhibrx. However, Ross Stores is 3.49 times less risky than Inhibrx. It trades about 0.04 of its potential returns per unit of risk. Inhibrx is currently generating about 0.0 per unit of risk. If you would invest 11,431 in Ross Stores on August 27, 2024 and sell it today you would earn a total of 3,178 from holding Ross Stores or generate 27.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ross Stores vs. Inhibrx
Performance |
| Timeline |
| Ross Stores |
| Inhibrx |
Ross Stores and Inhibrx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ross Stores and Inhibrx
The main advantage of trading using opposite Ross Stores and Inhibrx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ross Stores 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.| Ross Stores vs. Burlington Stores | Ross Stores vs. American Eagle Outfitters | Ross Stores vs. Lululemon Athletica | Ross Stores vs. Foot Locker |
| 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 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.
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