Correlation Between Inhibikase Therapeutics and Scholar Rock

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

By analyzing existing cross correlation between Inhibikase Therapeutics and Scholar Rock Holding, you can compare the effects of market volatilities on Inhibikase Therapeutics and Scholar Rock 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 Inhibikase Therapeutics with a short position of Scholar Rock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inhibikase Therapeutics and Scholar Rock.

Diversification Opportunities for Inhibikase Therapeutics and Scholar Rock

-0.37

Correlation Coefficient

Inhibikase Therapeutics  Scholar Rock

Very good diversification

The 3 months correlation between Inhibikase and Scholar is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Inhibikase Therapeutics and Scholar Rock Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scholar Rock Holding and Inhibikase Therapeutics 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 Inhibikase Therapeutics are associated (or correlated) with Scholar Rock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scholar Rock Holding has no effect on the direction of Inhibikase Therapeutics i.e., Inhibikase Therapeutics and Scholar Rock go up and down completely randomly.

Pair Corralation between Inhibikase Therapeutics and Scholar Rock

Considering the 90-day investment horizon Inhibikase Therapeutics is expected to under-perform the Scholar Rock. In addition to that, Inhibikase Therapeutics is 1.32 times more volatile than Scholar Rock Holding. It trades about -0.02 of its total potential returns per unit of risk. Scholar Rock Holding is currently generating about 0.11 per unit of volatility. If you would invest  2,970  in Scholar Rock Holding on May 7, 2025 and sell it today you would earn a total of  729.00  from holding Scholar Rock Holding or generate 24.55% return on investment over 90 days.

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

Inhibikase Therapeutics  vs.  Scholar Rock Holding

Inhibikase Therapeutics

Risk-Adjusted Performance

Weakest

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

Scholar Rock Holding

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Scholar Rock Holding are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Scholar Rock disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Inhibikase Therapeutics and Scholar Rock

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

The idea behind Inhibikase Therapeutics and Scholar Rock Holding 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.