Correlation Between Ikena Oncology and Crinetics Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Ikena Oncology and Crinetics Pharmaceuticals 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 Crinetics Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ikena Oncology and Crinetics Pharmaceuticals, you can compare the effects of market volatilities on Ikena Oncology and Crinetics Pharmaceuticals 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 Crinetics Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ikena Oncology and Crinetics Pharmaceuticals.
Diversification Opportunities for Ikena Oncology and Crinetics Pharmaceuticals
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ikena and Crinetics is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Ikena Oncology and Crinetics Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crinetics Pharmaceuticals 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 Crinetics Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crinetics Pharmaceuticals has no effect on the direction of Ikena Oncology i.e., Ikena Oncology and Crinetics Pharmaceuticals go up and down completely randomly.
Pair Corralation between Ikena Oncology and Crinetics Pharmaceuticals
Given the investment horizon of 90 days Ikena Oncology is expected to under-perform the Crinetics Pharmaceuticals. In addition to that, Ikena Oncology is 1.25 times more volatile than Crinetics Pharmaceuticals. It trades about -0.03 of its total potential returns per unit of risk. Crinetics Pharmaceuticals is currently generating about 0.07 per unit of volatility. If you would invest 2,203 in Crinetics Pharmaceuticals on August 29, 2024 and sell it today you would earn a total of 3,474 from holding Crinetics Pharmaceuticals or generate 157.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ikena Oncology vs. Crinetics Pharmaceuticals
Performance |
| Timeline |
| Ikena Oncology |
| Crinetics Pharmaceuticals |
Ikena Oncology and Crinetics Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ikena Oncology and Crinetics Pharmaceuticals
The main advantage of trading using opposite Ikena Oncology and Crinetics Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ikena Oncology position performs unexpectedly, Crinetics Pharmaceuticals 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 Crinetics Pharmaceuticals will offset losses from the drop in Crinetics Pharmaceuticals' long position.| Ikena Oncology vs. Eliem Therapeutics | Ikena Oncology vs. Scpharmaceuticals | Ikena Oncology vs. Milestone Pharmaceuticals | Ikena Oncology vs. Seres Therapeutics |
| Crinetics Pharmaceuticals vs. Eliem Therapeutics | Crinetics Pharmaceuticals vs. Scpharmaceuticals | Crinetics Pharmaceuticals vs. Milestone Pharmaceuticals | Crinetics Pharmaceuticals vs. Seres Therapeutics |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |