Correlation Between Inhibrx and Apollomics

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

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

Diversification Opportunities for Inhibrx and Apollomics

0.04

Correlation Coefficient

Inhibrx  Apollomics

Significant diversification

The 3 months correlation between Inhibrx and Apollomics is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and Apollomics Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollomics Class A and Inhibrx 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 Inhibrx are associated (or correlated) with Apollomics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollomics Class A has no effect on the direction of Inhibrx i.e., Inhibrx and Apollomics go up and down completely randomly.

Pair Corralation between Inhibrx and Apollomics

Given the investment horizon of 90 days Inhibrx is expected to generate 0.19 times more return on investment than Apollomics. However, Inhibrx is 5.15 times less risky than Apollomics. It trades about 0.01 of its potential returns per unit of risk. Apollomics Class A is currently generating about -0.01 per unit of risk. If you would invest  1,508  in Inhibrx on September 12, 2024 and sell it today you would lose (11.00) from holding Inhibrx or give up 0.73% of portfolio value over 90 days.

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

Inhibrx  vs.  Apollomics Class A

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.

Apollomics Class A

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Apollomics Class A has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy essential indicators, Apollomics is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Inhibrx and Apollomics

The main advantage of trading using opposite Inhibrx and Apollomics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inhibrx position performs unexpectedly, Apollomics 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 Apollomics will offset losses from the drop in Apollomics' long position.

The idea behind Inhibrx and Apollomics Class A 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.