Correlation Between Akanda Corp and Ikena Oncology
Can any of the company-specific risk be diversified away by investing in both Akanda Corp 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 Akanda Corp and Ikena Oncology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akanda Corp and Ikena Oncology, you can compare the effects of market volatilities on Akanda Corp 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 Akanda Corp with a short position of Ikena Oncology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akanda Corp and Ikena Oncology.
Diversification Opportunities for Akanda Corp and Ikena Oncology
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Akanda and Ikena is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Akanda Corp and Ikena Oncology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ikena Oncology and Akanda Corp 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 Akanda Corp 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 Akanda Corp i.e., Akanda Corp and Ikena Oncology go up and down completely randomly.
Pair Corralation between Akanda Corp and Ikena Oncology
Given the investment horizon of 90 days Akanda Corp is expected to generate 3.36 times more return on investment than Ikena Oncology. However, Akanda Corp is 3.36 times more volatile than Ikena Oncology. It trades about 0.17 of its potential returns per unit of risk. Ikena Oncology is currently generating about 0.03 per unit of risk. If you would invest 150.00 in Akanda Corp on September 2, 2024 and sell it today you would earn a total of 25.00 from holding Akanda Corp or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akanda Corp vs. Ikena Oncology
Performance |
| Timeline |
| Akanda Corp |
| Ikena Oncology |
Akanda Corp and Ikena Oncology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akanda Corp and Ikena Oncology
The main advantage of trading using opposite Akanda Corp and Ikena Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akanda Corp 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.| Akanda Corp vs. China SXT Pharmaceuticals | Akanda Corp vs. Petros Pharmaceuticals | Akanda Corp vs. GelStat Corp | Akanda Corp vs. Shuttle Pharmaceuticals |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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