Correlation Between GH Research and Ikena Oncology
Can any of the company-specific risk be diversified away by investing in both GH Research 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 GH Research and Ikena Oncology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GH Research PLC and Ikena Oncology, you can compare the effects of market volatilities on GH Research 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 GH Research with a short position of Ikena Oncology. Check out your portfolio center. Please also check ongoing floating volatility patterns of GH Research and Ikena Oncology.
Diversification Opportunities for GH Research and Ikena Oncology
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between GHRS and Ikena is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding GH Research PLC and Ikena Oncology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ikena Oncology and GH Research 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 GH Research PLC 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 GH Research i.e., GH Research and Ikena Oncology go up and down completely randomly.
Pair Corralation between GH Research and Ikena Oncology
Given the investment horizon of 90 days GH Research is expected to generate 1.92 times less return on investment than Ikena Oncology. But when comparing it to its historical volatility, GH Research PLC is 1.3 times less risky than Ikena Oncology. It trades about 0.01 of its potential returns per unit of risk. Ikena Oncology is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 279.00 in Ikena Oncology on September 3, 2024 and sell it today you would lose (106.00) from holding Ikena Oncology or give up 37.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GH Research PLC vs. Ikena Oncology
Performance |
| Timeline |
| GH Research PLC |
| Ikena Oncology |
GH Research and Ikena Oncology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GH Research and Ikena Oncology
The main advantage of trading using opposite GH Research and Ikena Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GH Research 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.| GH Research vs. DiaMedica Therapeutics | GH Research vs. Lyra Therapeutics | GH Research vs. Centessa Pharmaceuticals PLC |
| Ikena Oncology vs. DiaMedica Therapeutics | Ikena Oncology vs. Lyra Therapeutics | Ikena Oncology vs. Centessa Pharmaceuticals PLC |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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