Correlation Between Ikena Oncology and Estrella Immunopharma
Can any of the company-specific risk be diversified away by investing in both Ikena Oncology and Estrella Immunopharma 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 Estrella Immunopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ikena Oncology and Estrella Immunopharma, you can compare the effects of market volatilities on Ikena Oncology and Estrella Immunopharma 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 Estrella Immunopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ikena Oncology and Estrella Immunopharma.
Diversification Opportunities for Ikena Oncology and Estrella Immunopharma
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ikena and Estrella is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ikena Oncology and Estrella Immunopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Estrella Immunopharma 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 Estrella Immunopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Estrella Immunopharma has no effect on the direction of Ikena Oncology i.e., Ikena Oncology and Estrella Immunopharma go up and down completely randomly.
Pair Corralation between Ikena Oncology and Estrella Immunopharma
Given the investment horizon of 90 days Ikena Oncology is expected to under-perform the Estrella Immunopharma. But the stock apears to be less risky and, when comparing its historical volatility, Ikena Oncology is 5.8 times less risky than Estrella Immunopharma. The stock trades about -0.03 of its potential returns per unit of risk. The Estrella Immunopharma is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 5.29 in Estrella Immunopharma on September 2, 2024 and sell it today you would earn a total of 3.81 from holding Estrella Immunopharma or generate 72.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 47.04% |
| Values | Daily Returns |
Ikena Oncology vs. Estrella Immunopharma
Performance |
| Timeline |
| Ikena Oncology |
| Estrella Immunopharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ikena Oncology and Estrella Immunopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ikena Oncology and Estrella Immunopharma
The main advantage of trading using opposite Ikena Oncology and Estrella Immunopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ikena Oncology position performs unexpectedly, Estrella Immunopharma 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 Estrella Immunopharma will offset losses from the drop in Estrella Immunopharma's long position.| Ikena Oncology vs. Edgewise Therapeutics | Ikena Oncology vs. Design Therapeutics | Ikena Oncology vs. Xilio Development | Ikena Oncology vs. Eliem Therapeutics |
| Estrella Immunopharma vs. Hf Foods Group | Estrella Immunopharma vs. Encore Capital Group | Estrella Immunopharma vs. SunOpta | Estrella Immunopharma vs. Tyson Foods |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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