Correlation Between Inhibrx and Brickell Biotech

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

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

Diversification Opportunities for Inhibrx and Brickell Biotech

  Correlation Coefficient
Brickell Biotech

Pay attention - limited upside

The 3 months correlation between Inhibrx and Brickell is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Inhibrx and Brickell Biotech in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Brickell Biotech 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 Brickell Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brickell Biotech has no effect on the direction of Inhibrx i.e., Inhibrx and Brickell Biotech go up and down completely randomly.

Pair Corralation between Inhibrx and Brickell Biotech

Given the investment horizon of 90 days Inhibrx is expected to generate 1.11 times more return on investment than Brickell Biotech. However, Inhibrx is 1.11 times more volatile than Brickell Biotech. It trades about 0.12 of its potential returns per unit of risk. Brickell Biotech is currently generating about -0.37 per unit of risk. If you would invest  3,244  in Inhibrx on September 1, 2021 and sell it today you would earn a total of  799.00  from holding Inhibrx or generate 24.63% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
ValuesDaily Returns

Inhibrx  vs.  Brickell Biotech

 Performance (%) 
Inhibrx Performance
9 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Inhibrx are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile fundamental drivers, Inhibrx showed solid returns over the last few months and may actually be approaching a breakup point.

Inhibrx Price Channel

Brickell Biotech 
Brickell Performance
0 of 100
Over the last 90 days Brickell Biotech 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 fundamental drivers remain nearly stable which may send shares a bit higher in December 2021. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Brickell Price Channel

Inhibrx and Brickell Biotech Volatility Contrast

 Predicted Return Density 

Pair Trading with Inhibrx and Brickell Biotech

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


Pair trading matchups for Inhibrx

The idea behind Inhibrx and Brickell Biotech 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 Analyst Recommendations module to analyst recommendations and target price estimates broken down by several categories.

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