Correlation Between Aeglea Bio and Ikena Oncology
Can any of the company-specific risk be diversified away by investing in both Aeglea Bio and Ikena Oncology 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 Aeglea Bio and Ikena Oncology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aeglea Bio Therapeutics and Ikena Oncology, you can compare the effects of market volatilities on Aeglea Bio and Ikena Oncology 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 Aeglea Bio with a short position of Ikena Oncology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aeglea Bio and Ikena Oncology.
Diversification Opportunities for Aeglea Bio and Ikena Oncology
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aeglea and Ikena is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Aeglea Bio Therapeutics and Ikena Oncology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ikena Oncology and Aeglea Bio 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 Aeglea Bio Therapeutics are associated (or correlated) with Ikena Oncology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ikena Oncology has no effect on the direction of Aeglea Bio i.e., Aeglea Bio and Ikena Oncology go up and down completely randomly.
Pair Corralation between Aeglea Bio and Ikena Oncology
If you would invest 59.00 in Aeglea Bio Therapeutics on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Aeglea Bio Therapeutics or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.3% |
| Values | Daily Returns |
Aeglea Bio Therapeutics vs. Ikena Oncology
Performance |
| Timeline |
| Aeglea Bio Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ikena Oncology |
Aeglea Bio and Ikena Oncology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aeglea Bio and Ikena Oncology
The main advantage of trading using opposite Aeglea Bio and Ikena Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aeglea Bio position performs unexpectedly, Ikena Oncology 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 Ikena Oncology will offset losses from the drop in Ikena Oncology's long position.| Aeglea Bio vs. Edgewise Therapeutics | Aeglea Bio vs. Ikena Oncology | Aeglea Bio vs. Design Therapeutics | Aeglea Bio vs. Xilio Development |
| Ikena Oncology vs. Edgewise Therapeutics | Ikena Oncology vs. Design Therapeutics | Ikena Oncology vs. Xilio Development | Ikena Oncology vs. Eliem Therapeutics |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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