Correlation Between Entegris and Inhibrx

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

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

Diversification Opportunities for Entegris and Inhibrx

0.33

Correlation Coefficient

Entegris  Inhibrx

Weak diversification

The 3 months correlation between Entegris and Inhibrx is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Entegris and Inhibrx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inhibrx and Entegris 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 Entegris 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 Entegris i.e., Entegris and Inhibrx go up and down completely randomly.

Pair Corralation between Entegris and Inhibrx

Given the investment horizon of 90 days Entegris is expected to generate 0.7 times more return on investment than Inhibrx. However, Entegris is 1.43 times less risky than Inhibrx. It trades about 0.15 of its potential returns per unit of risk. Inhibrx is currently generating about -0.04 per unit of risk. If you would invest  10,098  in Entegris on September 5, 2024 and sell it today you would earn a total of  719.00  from holding Entegris or generate 7.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Entegris  vs.  Inhibrx

Entegris

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Entegris has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Entegris is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Inhibrx

Risk-Adjusted Performance

0 of 100

Very 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 latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Entegris and Inhibrx

The main advantage of trading using opposite Entegris and Inhibrx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Entegris 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 Entegris 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 Stocks Directory module to find actively traded stocks across global markets.