Correlation Between POINT Biopharma and Inhibrx

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

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

Diversification Opportunities for POINT Biopharma and Inhibrx

-0.22

Correlation Coefficient

POINT Biopharma  Inhibrx

Very good diversification

The 3 months correlation between POINT and Inhibrx is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding POINT Biopharma Global and Inhibrx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inhibrx and POINT Biopharma 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 POINT Biopharma Global 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 POINT Biopharma i.e., POINT Biopharma and Inhibrx go up and down completely randomly.

Pair Corralation between POINT Biopharma and Inhibrx

If you would invest  906.00  in POINT Biopharma Global on September 5, 2024 and sell it today you would earn a total of  0.00  from holding POINT Biopharma Global or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

POINT Biopharma Global  vs.  Inhibrx

POINT Biopharma Global

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days POINT Biopharma Global has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, POINT Biopharma is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

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 POINT Biopharma and Inhibrx

The main advantage of trading using opposite POINT Biopharma and Inhibrx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if POINT Biopharma 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 POINT Biopharma Global 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.

Check out your portfolio center.

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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.