Correlation Between Ikena Oncology and Entera Bio
Can any of the company-specific risk be diversified away by investing in both Ikena Oncology and Entera Bio 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 Entera Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ikena Oncology and Entera Bio, you can compare the effects of market volatilities on Ikena Oncology and Entera Bio 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 Entera Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ikena Oncology and Entera Bio.
Diversification Opportunities for Ikena Oncology and Entera Bio
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ikena and Entera is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Ikena Oncology and Entera Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entera Bio 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 Entera Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Entera Bio has no effect on the direction of Ikena Oncology i.e., Ikena Oncology and Entera Bio go up and down completely randomly.
Pair Corralation between Ikena Oncology and Entera Bio
Given the investment horizon of 90 days Ikena Oncology is expected to generate 0.5 times more return on investment than Entera Bio. However, Ikena Oncology is 1.99 times less risky than Entera Bio. It trades about 0.01 of its potential returns per unit of risk. Entera Bio is currently generating about -0.21 per unit of risk. If you would invest 171.00 in Ikena Oncology on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Ikena Oncology or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Ikena Oncology vs. Entera Bio
Performance |
| Timeline |
| Ikena Oncology |
| Entera Bio |
Ikena Oncology and Entera Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ikena Oncology and Entera Bio
The main advantage of trading using opposite Ikena Oncology and Entera Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ikena Oncology position performs unexpectedly, Entera Bio 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 Entera Bio will offset losses from the drop in Entera Bio's long position.| Ikena Oncology vs. Eliem Therapeutics | Ikena Oncology vs. HCW Biologics | Ikena Oncology vs. RenovoRx | Ikena Oncology vs. Tempest Therapeutics |
| Entera Bio vs. NLS Pharmaceutics AG | Entera Bio vs. Vaccinex | Entera Bio vs. Alterity Therapeutics | Entera Bio vs. Immutep Ltd ADR |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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