Correlation Between Ikena Oncology and Immuron
Can any of the company-specific risk be diversified away by investing in both Ikena Oncology and Immuron 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 Immuron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ikena Oncology and Immuron Ltd ADR, you can compare the effects of market volatilities on Ikena Oncology and Immuron 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 Immuron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ikena Oncology and Immuron.
Diversification Opportunities for Ikena Oncology and Immuron
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ikena and Immuron is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Ikena Oncology and Immuron Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immuron Ltd ADR 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 Immuron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immuron Ltd ADR has no effect on the direction of Ikena Oncology i.e., Ikena Oncology and Immuron go up and down completely randomly.
Pair Corralation between Ikena Oncology and Immuron
Given the investment horizon of 90 days Ikena Oncology is expected to under-perform the Immuron. But the stock apears to be less risky and, when comparing its historical volatility, Ikena Oncology is 1.78 times less risky than Immuron. The stock trades about -0.03 of its potential returns per unit of risk. The Immuron Ltd ADR is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 198.00 in Immuron Ltd ADR on August 31, 2024 and sell it today you would lose (9.00) from holding Immuron Ltd ADR or give up 4.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.93% |
| Values | Daily Returns |
Ikena Oncology vs. Immuron Ltd ADR
Performance |
| Timeline |
| Ikena Oncology |
| Immuron Ltd ADR |
Ikena Oncology and Immuron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ikena Oncology and Immuron
The main advantage of trading using opposite Ikena Oncology and Immuron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ikena Oncology position performs unexpectedly, Immuron 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 Immuron will offset losses from the drop in Immuron's long position.| Ikena Oncology vs. Edgewise Therapeutics | Ikena Oncology vs. Design Therapeutics | Ikena Oncology vs. Xilio Development | Ikena Oncology vs. Eliem Therapeutics |
| Immuron vs. Tscan Therapeutics | Immuron vs. In8bio Inc | Immuron vs. Phio Pharmaceuticals Corp | Immuron vs. Immix Biopharma |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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