Correlation Between Ikena Oncology and Hookipa Pharma
Can any of the company-specific risk be diversified away by investing in both Ikena Oncology and Hookipa Pharma 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 Hookipa Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ikena Oncology and Hookipa Pharma, you can compare the effects of market volatilities on Ikena Oncology and Hookipa Pharma 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 Hookipa Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ikena Oncology and Hookipa Pharma.
Diversification Opportunities for Ikena Oncology and Hookipa Pharma
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ikena and Hookipa is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Ikena Oncology and Hookipa Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hookipa Pharma 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 Hookipa Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hookipa Pharma has no effect on the direction of Ikena Oncology i.e., Ikena Oncology and Hookipa Pharma go up and down completely randomly.
Pair Corralation between Ikena Oncology and Hookipa Pharma
Given the investment horizon of 90 days Ikena Oncology is expected to generate 0.33 times more return on investment than Hookipa Pharma. However, Ikena Oncology is 3.02 times less risky than Hookipa Pharma. It trades about 0.08 of its potential returns per unit of risk. Hookipa Pharma is currently generating about -0.52 per unit of risk. If you would invest 169.00 in Ikena Oncology on August 24, 2024 and sell it today you would earn a total of 4.00 from holding Ikena Oncology or generate 2.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ikena Oncology vs. Hookipa Pharma
Performance |
| Timeline |
| Ikena Oncology |
| Hookipa Pharma |
Ikena Oncology and Hookipa Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ikena Oncology and Hookipa Pharma
The main advantage of trading using opposite Ikena Oncology and Hookipa Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ikena Oncology position performs unexpectedly, Hookipa Pharma 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 Hookipa Pharma will offset losses from the drop in Hookipa Pharma's long position.| Ikena Oncology vs. Lyra Therapeutics | Ikena Oncology vs. Hookipa Pharma | Ikena Oncology vs. Cingulate Warrants | Ikena Oncology vs. SAB Biotherapeutics |
| Hookipa Pharma vs. Mereo BioPharma Group | Hookipa Pharma vs. Terns Pharmaceuticals | Hookipa Pharma vs. PDS Biotechnology Corp | Hookipa Pharma vs. Inozyme Pharma |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |