Correlation Between Cingulate Warrants and Inhibrx

Can any of the company-specific risk be diversified away by investing in both Cingulate Warrants 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 Cingulate Warrants and Inhibrx into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cingulate Warrants and Inhibrx, you can compare the effects of market volatilities on Cingulate Warrants 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 Cingulate Warrants with a short position of Inhibrx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cingulate Warrants and Inhibrx.

Diversification Opportunities for Cingulate Warrants and Inhibrx

0.29

Correlation Coefficient

Cingulate Warrants  Inhibrx

Modest diversification

The 3 months correlation between Cingulate and Inhibrx is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Cingulate Warrants and Inhibrx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inhibrx and Cingulate Warrants 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 Cingulate Warrants 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 Cingulate Warrants i.e., Cingulate Warrants and Inhibrx go up and down completely randomly.

Pair Corralation between Cingulate Warrants and Inhibrx

Assuming the 90 days horizon Cingulate Warrants is expected to generate 5.63 times more return on investment than Inhibrx. However, Cingulate Warrants is 5.63 times more volatile than Inhibrx. It trades about 0.0 of its potential returns per unit of risk. Inhibrx is currently generating about -0.03 per unit of risk. If you would invest  7.00  in Cingulate Warrants on September 13, 2024 and sell it today you would lose (3.63) from holding Cingulate Warrants or give up 51.86% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Cingulate Warrants  vs.  Inhibrx

Cingulate Warrants

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cingulate Warrants has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical and fundamental indicators, Cingulate Warrants is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Inhibrx

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Inhibrx has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong fundamental drivers, Inhibrx is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Cingulate Warrants and Inhibrx

The main advantage of trading using opposite Cingulate Warrants and Inhibrx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cingulate Warrants 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.

The idea behind Cingulate Warrants and Inhibrx pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.