Correlation Between Ikena Oncology and Ascendis Pharma
Can any of the company-specific risk be diversified away by investing in both Ikena Oncology and Ascendis Pharma 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 Ikena Oncology and Ascendis Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ikena Oncology and Ascendis Pharma AS, you can compare the effects of market volatilities on Ikena Oncology and Ascendis Pharma 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 Ikena Oncology with a short position of Ascendis Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ikena Oncology and Ascendis Pharma.
Diversification Opportunities for Ikena Oncology and Ascendis Pharma
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ikena and Ascendis is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Ikena Oncology and Ascendis Pharma AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascendis Pharma AS and Ikena Oncology 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 Ikena Oncology are associated (or correlated) with Ascendis Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascendis Pharma AS has no effect on the direction of Ikena Oncology i.e., Ikena Oncology and Ascendis Pharma go up and down completely randomly.
Pair Corralation between Ikena Oncology and Ascendis Pharma
Given the investment horizon of 90 days Ikena Oncology is expected to under-perform the Ascendis Pharma. But the stock apears to be less risky and, when comparing its historical volatility, Ikena Oncology is 1.5 times less risky than Ascendis Pharma. The stock trades about -0.01 of its potential returns per unit of risk. The Ascendis Pharma AS is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 12,280 in Ascendis Pharma AS on August 31, 2024 and sell it today you would earn a total of 1,352 from holding Ascendis Pharma AS or generate 11.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ikena Oncology vs. Ascendis Pharma AS
Performance |
| Timeline |
| Ikena Oncology |
| Ascendis Pharma AS |
Ikena Oncology and Ascendis Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ikena Oncology and Ascendis Pharma
The main advantage of trading using opposite Ikena Oncology and Ascendis Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ikena Oncology position performs unexpectedly, Ascendis Pharma 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 Ascendis Pharma will offset losses from the drop in Ascendis Pharma's long position.| Ikena Oncology vs. Edgewise Therapeutics | Ikena Oncology vs. Design Therapeutics | Ikena Oncology vs. Xilio Development | Ikena Oncology vs. Eliem Therapeutics |
| Ascendis Pharma vs. Apellis Pharmaceuticals | Ascendis Pharma vs. BeiGene | Ascendis Pharma vs. Akero Therapeutics | Ascendis Pharma vs. Blueprint Medicines Corp |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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