Correlation Between Ikena Oncology and Enliven Therapeutics
Can any of the company-specific risk be diversified away by investing in both Ikena Oncology and Enliven Therapeutics 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 Enliven Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ikena Oncology and Enliven Therapeutics, you can compare the effects of market volatilities on Ikena Oncology and Enliven Therapeutics 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 Enliven Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ikena Oncology and Enliven Therapeutics.
Diversification Opportunities for Ikena Oncology and Enliven Therapeutics
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ikena and Enliven is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Ikena Oncology and Enliven Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enliven Therapeutics 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 Enliven Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enliven Therapeutics has no effect on the direction of Ikena Oncology i.e., Ikena Oncology and Enliven Therapeutics go up and down completely randomly.
Pair Corralation between Ikena Oncology and Enliven Therapeutics
Given the investment horizon of 90 days Ikena Oncology is expected to under-perform the Enliven Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Ikena Oncology is 2.27 times less risky than Enliven Therapeutics. The stock trades about -0.27 of its potential returns per unit of risk. The Enliven Therapeutics is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 2,390 in Enliven Therapeutics on November 3, 2024 and sell it today you would lose (204.00) from holding Enliven Therapeutics or give up 8.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ikena Oncology vs. Enliven Therapeutics
Performance |
| Timeline |
| Ikena Oncology |
| Enliven Therapeutics |
Ikena Oncology and Enliven Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ikena Oncology and Enliven Therapeutics
The main advantage of trading using opposite Ikena Oncology and Enliven Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ikena Oncology position performs unexpectedly, Enliven Therapeutics 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 Enliven Therapeutics will offset losses from the drop in Enliven Therapeutics' long position.| Ikena Oncology vs. Edgewise Therapeutics | Ikena Oncology vs. Design Therapeutics | Ikena Oncology vs. Xilio Development | Ikena Oncology vs. Monte Rosa Therapeutics |
| Enliven Therapeutics vs. Pmv Pharmaceuticals | Enliven Therapeutics vs. Cullinan Oncology LLC | Enliven Therapeutics vs. Immuneering Corp | Enliven Therapeutics vs. Aerovate 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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