Correlation Between Ikena Oncology and Immatics Biotechnologies
Can any of the company-specific risk be diversified away by investing in both Ikena Oncology and Immatics Biotechnologies 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 Immatics Biotechnologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ikena Oncology and immatics biotechnologies GmbH, you can compare the effects of market volatilities on Ikena Oncology and Immatics Biotechnologies 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 Immatics Biotechnologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ikena Oncology and Immatics Biotechnologies.
Diversification Opportunities for Ikena Oncology and Immatics Biotechnologies
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ikena and Immatics is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Ikena Oncology and immatics biotechnologies GmbH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immatics Biotechnologies 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 Immatics Biotechnologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immatics Biotechnologies has no effect on the direction of Ikena Oncology i.e., Ikena Oncology and Immatics Biotechnologies go up and down completely randomly.
Pair Corralation between Ikena Oncology and Immatics Biotechnologies
Given the investment horizon of 90 days Ikena Oncology is expected to generate 0.18 times more return on investment than Immatics Biotechnologies. However, Ikena Oncology is 5.64 times less risky than Immatics Biotechnologies. It trades about -0.01 of its potential returns per unit of risk. immatics biotechnologies GmbH is currently generating about -0.63 per unit of risk. If you would invest 172.00 in Ikena Oncology on August 28, 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 Against |
| Strength | Insignificant |
| Accuracy | 86.36% |
| Values | Daily Returns |
Ikena Oncology vs. immatics biotechnologies GmbH
Performance |
| Timeline |
| Ikena Oncology |
| Immatics Biotechnologies |
Ikena Oncology and Immatics Biotechnologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ikena Oncology and Immatics Biotechnologies
The main advantage of trading using opposite Ikena Oncology and Immatics Biotechnologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ikena Oncology position performs unexpectedly, Immatics Biotechnologies 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 Immatics Biotechnologies will offset losses from the drop in Immatics Biotechnologies' long position.| Ikena Oncology vs. Eliem Therapeutics | Ikena Oncology vs. Scpharmaceuticals | Ikena Oncology vs. Milestone Pharmaceuticals | Ikena Oncology vs. Seres Therapeutics |
| Immatics Biotechnologies vs. Eliem Therapeutics | Immatics Biotechnologies vs. Scpharmaceuticals | Immatics Biotechnologies vs. Milestone Pharmaceuticals | Immatics Biotechnologies vs. Seres Therapeutics |
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 Stocks Directory module to find actively traded stocks across global markets.
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