Correlation Between Inhibrx and Astrana Health

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

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

Diversification Opportunities for Inhibrx and Astrana Health

0.63

Correlation Coefficient

Inhibrx  Astrana Health

Poor diversification

The 3 months correlation between Inhibrx and Astrana is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and Astrana Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astrana Health 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 Astrana Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astrana Health has no effect on the direction of Inhibrx i.e., Inhibrx and Astrana Health go up and down completely randomly.

Pair Corralation between Inhibrx and Astrana Health

Given the investment horizon of 90 days Inhibrx is expected to generate 1.23 times more return on investment than Astrana Health. However, Inhibrx is 1.23 times more volatile than Astrana Health. It trades about -0.04 of its potential returns per unit of risk. Astrana Health is currently generating about -0.57 per unit of risk. If you would invest  1,486  in Inhibrx on September 26, 2024 and sell it today you would lose (39.00) from holding Inhibrx or give up 2.62% of portfolio value over 90 days.

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

Inhibrx  vs.  Astrana Health

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.

Astrana Health

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Astrana Health has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Inhibrx and Astrana Health

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

The idea behind Inhibrx and Astrana Health 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.