Correlation Between Inhibrx and Maison Solutions

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

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

Diversification Opportunities for Inhibrx and Maison Solutions

0.02

Correlation Coefficient

Inhibrx  Maison Solutions

Significant diversification

The 3 months correlation between Inhibrx and Maison is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and Maison Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maison Solutions 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 Maison Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maison Solutions has no effect on the direction of Inhibrx i.e., Inhibrx and Maison Solutions go up and down completely randomly.

Pair Corralation between Inhibrx and Maison Solutions

Given the investment horizon of 90 days Inhibrx is expected to generate 3.4 times less return on investment than Maison Solutions. But when comparing it to its historical volatility, Inhibrx is 2.62 times less risky than Maison Solutions. It trades about 0.01 of its potential returns per unit of risk. Maison Solutions is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  896.00  in Maison Solutions on September 26, 2024 and sell it today you would lose (785.00) from holding Maison Solutions or give up 87.61% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	62.1%
Values	Daily Returns

Inhibrx  vs.  Maison Solutions

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.

Maison Solutions

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Maison Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Inhibrx and Maison Solutions

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

The idea behind Inhibrx and Maison Solutions 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.