Correlation Between Ikena Oncology and Molecular Partners
Can any of the company-specific risk be diversified away by investing in both Ikena Oncology and Molecular Partners 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 Molecular Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ikena Oncology and Molecular Partners AG, you can compare the effects of market volatilities on Ikena Oncology and Molecular Partners 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 Molecular Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ikena Oncology and Molecular Partners.
Diversification Opportunities for Ikena Oncology and Molecular Partners
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ikena and Molecular is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Ikena Oncology and Molecular Partners AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Molecular Partners 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 Molecular Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Molecular Partners has no effect on the direction of Ikena Oncology i.e., Ikena Oncology and Molecular Partners go up and down completely randomly.
Pair Corralation between Ikena Oncology and Molecular Partners
Given the investment horizon of 90 days Ikena Oncology is expected to generate 0.23 times more return on investment than Molecular Partners. However, Ikena Oncology is 4.43 times less risky than Molecular Partners. It trades about -0.01 of its potential returns per unit of risk. Molecular Partners AG is currently generating about -0.07 per unit of risk. If you would invest 172.00 in Ikena Oncology on August 29, 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ikena Oncology vs. Molecular Partners AG
Performance |
| Timeline |
| Ikena Oncology |
| Molecular Partners |
Ikena Oncology and Molecular Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ikena Oncology and Molecular Partners
The main advantage of trading using opposite Ikena Oncology and Molecular Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ikena Oncology position performs unexpectedly, Molecular Partners 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 Molecular Partners will offset losses from the drop in Molecular Partners' long position.| Ikena Oncology vs. Eliem Therapeutics | Ikena Oncology vs. Scpharmaceuticals | Ikena Oncology vs. Milestone Pharmaceuticals | Ikena Oncology vs. Seres Therapeutics |
| Molecular Partners vs. Mineralys Therapeutics, Common | Molecular Partners vs. AN2 Therapeutics | Molecular Partners vs. Pharvaris BV | Molecular Partners vs. PepGen |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |