Correlation Between Hookipa Pharma and Ikena Oncology
Can any of the company-specific risk be diversified away by investing in both Hookipa Pharma 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 Hookipa Pharma and Ikena Oncology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hookipa Pharma and Ikena Oncology, you can compare the effects of market volatilities on Hookipa Pharma 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 Hookipa Pharma with a short position of Ikena Oncology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hookipa Pharma and Ikena Oncology.
Diversification Opportunities for Hookipa Pharma and Ikena Oncology
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hookipa and Ikena is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Hookipa Pharma and Ikena Oncology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ikena Oncology and Hookipa Pharma 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 Hookipa Pharma 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 Hookipa Pharma i.e., Hookipa Pharma and Ikena Oncology go up and down completely randomly.
Pair Corralation between Hookipa Pharma and Ikena Oncology
Given the investment horizon of 90 days Hookipa Pharma is expected to under-perform the Ikena Oncology. In addition to that, Hookipa Pharma is 3.02 times more volatile than Ikena Oncology. It trades about -0.52 of its total potential returns per unit of risk. Ikena Oncology is currently generating about 0.08 per unit of volatility. If you would invest 169.00 in Ikena Oncology on August 24, 2024 and sell it today you would earn a total of 4.00 from holding Ikena Oncology or generate 2.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hookipa Pharma vs. Ikena Oncology
Performance |
| Timeline |
| Hookipa Pharma |
| Ikena Oncology |
Hookipa Pharma and Ikena Oncology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hookipa Pharma and Ikena Oncology
The main advantage of trading using opposite Hookipa Pharma and Ikena Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hookipa Pharma 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.| Hookipa Pharma vs. Mereo BioPharma Group | Hookipa Pharma vs. Terns Pharmaceuticals | Hookipa Pharma vs. PDS Biotechnology Corp | Hookipa Pharma vs. Inozyme Pharma |
| Ikena Oncology vs. Lyra Therapeutics | Ikena Oncology vs. Hookipa Pharma | Ikena Oncology vs. Cingulate Warrants | Ikena Oncology vs. SAB Biotherapeutics |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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