Correlation Between Inhibrx and Celcuity LLC

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

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

Diversification Opportunities for Inhibrx and Celcuity LLC

0.44

Correlation Coefficient

Inhibrx  Celcuity LLC

Very weak diversification

The 3 months correlation between Inhibrx and Celcuity is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and Celcuity LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celcuity LLC 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 Celcuity LLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celcuity LLC has no effect on the direction of Inhibrx i.e., Inhibrx and Celcuity LLC go up and down completely randomly.

Pair Corralation between Inhibrx and Celcuity LLC

Given the investment horizon of 90 days Inhibrx is expected to generate 0.98 times more return on investment than Celcuity LLC. However, Inhibrx is 1.02 times less risky than Celcuity LLC. It trades about -0.01 of its potential returns per unit of risk. Celcuity LLC is currently generating about -0.09 per unit of risk. If you would invest  1,595  in Inhibrx on September 3, 2024 and sell it today you would lose (69.00) from holding Inhibrx or give up 4.33% of portfolio value over 90 days.

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

Inhibrx  vs.  Celcuity LLC

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

Celcuity LLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Celcuity LLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's essential indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Inhibrx and Celcuity LLC

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

The idea behind Inhibrx and Celcuity LLC 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.