Correlation Between Stoke Therapeutics and Inhibrx
Can any of the company-specific risk be diversified away by investing in both Stoke 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 Stoke Therapeutics and Inhibrx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stoke Therapeutics and Inhibrx, you can compare the effects of market volatilities on Stoke 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 Stoke Therapeutics with a short position of Inhibrx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stoke Therapeutics and Inhibrx.
Diversification Opportunities for Stoke Therapeutics and Inhibrx
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Stoke and Inhibrx is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Stoke Therapeutics and Inhibrx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inhibrx and Stoke 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 Stoke 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 Stoke Therapeutics i.e., Stoke Therapeutics and Inhibrx go up and down completely randomly.
Pair Corralation between Stoke Therapeutics and Inhibrx
Given the investment horizon of 90 days Stoke Therapeutics is expected to under-perform the Inhibrx. In addition to that, Stoke Therapeutics is 1.25 times more volatile than Inhibrx. It trades about -0.18 of its total potential returns per unit of risk. Inhibrx is currently generating about -0.02 per unit of volatility. If you would invest 1,388 in Inhibrx on October 20, 2024 and sell it today you would lose (39.00) from holding Inhibrx or give up 2.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stoke Therapeutics vs. Inhibrx
Performance |
| Timeline |
| Stoke Therapeutics |
| Inhibrx |
Stoke Therapeutics and Inhibrx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stoke Therapeutics and Inhibrx
The main advantage of trading using opposite Stoke Therapeutics and Inhibrx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stoke 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.| Stoke Therapeutics vs. Adaptimmune Therapeutics Plc | Stoke Therapeutics vs. Black Diamond Therapeutics | Stoke Therapeutics vs. Relay Therapeutics | Stoke Therapeutics vs. Pliant 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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