Correlation Between Cyclacel Pharmaceuticals and Ikena Oncology
Can any of the company-specific risk be diversified away by investing in both Cyclacel Pharmaceuticals 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 Cyclacel Pharmaceuticals and Ikena Oncology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cyclacel Pharmaceuticals and Ikena Oncology, you can compare the effects of market volatilities on Cyclacel Pharmaceuticals 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 Cyclacel Pharmaceuticals with a short position of Ikena Oncology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cyclacel Pharmaceuticals and Ikena Oncology.
Diversification Opportunities for Cyclacel Pharmaceuticals and Ikena Oncology
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cyclacel and Ikena is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Cyclacel Pharmaceuticals and Ikena Oncology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ikena Oncology and Cyclacel Pharmaceuticals 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 Cyclacel Pharmaceuticals 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 Cyclacel Pharmaceuticals i.e., Cyclacel Pharmaceuticals and Ikena Oncology go up and down completely randomly.
Pair Corralation between Cyclacel Pharmaceuticals and Ikena Oncology
Given the investment horizon of 90 days Cyclacel Pharmaceuticals is expected to under-perform the Ikena Oncology. In addition to that, Cyclacel Pharmaceuticals is 1.34 times more volatile than Ikena Oncology. It trades about -0.05 of its total potential returns per unit of risk. Ikena Oncology is currently generating about 0.02 per unit of volatility. If you would invest 274.00 in Ikena Oncology on September 4, 2024 and sell it today you would lose (103.00) from holding Ikena Oncology or give up 37.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Cyclacel Pharmaceuticals vs. Ikena Oncology
Performance |
| Timeline |
| Cyclacel Pharmaceuticals |
| Ikena Oncology |
Cyclacel Pharmaceuticals and Ikena Oncology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cyclacel Pharmaceuticals and Ikena Oncology
The main advantage of trading using opposite Cyclacel Pharmaceuticals and Ikena Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cyclacel Pharmaceuticals 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.| Cyclacel Pharmaceuticals vs. Eliem Therapeutics | Cyclacel Pharmaceuticals vs. Ikena Oncology | Cyclacel Pharmaceuticals vs. Ovid Therapeutics | Cyclacel Pharmaceuticals vs. Connect Biopharma Holdings |
| Ikena Oncology vs. Candel Therapeutics | Ikena Oncology vs. Cingulate Warrants | Ikena Oncology vs. Unicycive Therapeutics | Ikena Oncology vs. Cardio Diagnostics Holdings |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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