Correlation Between Ikena Oncology and Edgewise Therapeutics
Can any of the company-specific risk be diversified away by investing in both Ikena Oncology and Edgewise 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 Edgewise 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 Edgewise Therapeutics, you can compare the effects of market volatilities on Ikena Oncology and Edgewise 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 Edgewise Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ikena Oncology and Edgewise Therapeutics.
Diversification Opportunities for Ikena Oncology and Edgewise Therapeutics
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ikena and Edgewise is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Ikena Oncology and Edgewise Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edgewise 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 Edgewise Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edgewise Therapeutics has no effect on the direction of Ikena Oncology i.e., Ikena Oncology and Edgewise Therapeutics go up and down completely randomly.
Pair Corralation between Ikena Oncology and Edgewise Therapeutics
Given the investment horizon of 90 days Ikena Oncology is expected to generate 0.57 times more return on investment than Edgewise Therapeutics. However, Ikena Oncology is 1.77 times less risky than Edgewise Therapeutics. It trades about -0.01 of its potential returns per unit of risk. Edgewise Therapeutics is currently generating about -0.11 per unit of risk. If you would invest 172.00 in Ikena Oncology on August 27, 2024 and sell it today you would lose (1.00) from holding Ikena Oncology or give up 0.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ikena Oncology vs. Edgewise Therapeutics
Performance |
| Timeline |
| Ikena Oncology |
| Edgewise Therapeutics |
Ikena Oncology and Edgewise Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ikena Oncology and Edgewise Therapeutics
The main advantage of trading using opposite Ikena Oncology and Edgewise Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ikena Oncology position performs unexpectedly, Edgewise 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 Edgewise Therapeutics will offset losses from the drop in Edgewise Therapeutics' long position.| Ikena Oncology vs. Eliem Therapeutics | Ikena Oncology vs. HCW Biologics | Ikena Oncology vs. Scpharmaceuticals | Ikena Oncology vs. Milestone Pharmaceuticals |
| Edgewise Therapeutics vs. Century Therapeutics | Edgewise Therapeutics vs. C4 Therapeutics | Edgewise Therapeutics vs. Mineralys Therapeutics, Common | Edgewise Therapeutics vs. Cullinan Oncology LLC |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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