Correlation Between Cingulate Warrants and Ikena Oncology
Can any of the company-specific risk be diversified away by investing in both Cingulate Warrants 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 Cingulate Warrants and Ikena Oncology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cingulate Warrants and Ikena Oncology, you can compare the effects of market volatilities on Cingulate Warrants 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 Cingulate Warrants with a short position of Ikena Oncology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cingulate Warrants and Ikena Oncology.
Diversification Opportunities for Cingulate Warrants and Ikena Oncology
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cingulate and Ikena is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Cingulate Warrants and Ikena Oncology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ikena Oncology and Cingulate Warrants 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 Cingulate Warrants 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 Cingulate Warrants i.e., Cingulate Warrants and Ikena Oncology go up and down completely randomly.
Pair Corralation between Cingulate Warrants and Ikena Oncology
Assuming the 90 days horizon Cingulate Warrants is expected to generate 14.34 times more return on investment than Ikena Oncology. However, Cingulate Warrants is 14.34 times more volatile than Ikena Oncology. It trades about 0.07 of its potential returns per unit of risk. Ikena Oncology is currently generating about -0.01 per unit of risk. If you would invest 5.19 in Cingulate Warrants on August 28, 2024 and sell it today you would lose (0.46) from holding Cingulate Warrants or give up 8.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Cingulate Warrants vs. Ikena Oncology
Performance |
| Timeline |
| Cingulate Warrants |
| Ikena Oncology |
Cingulate Warrants and Ikena Oncology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cingulate Warrants and Ikena Oncology
The main advantage of trading using opposite Cingulate Warrants and Ikena Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cingulate Warrants 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.| Cingulate Warrants vs. Cingulate | Cingulate Warrants vs. Celularity | Cingulate Warrants vs. NeuroSense Therapeutics Ltd |
| Ikena Oncology vs. Eliem Therapeutics | Ikena Oncology vs. HCW Biologics | Ikena Oncology vs. Scpharmaceuticals | Ikena Oncology vs. Milestone Pharmaceuticals |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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