Correlation Between Ikena Oncology and Nautilus Biotechnology
Can any of the company-specific risk be diversified away by investing in both Ikena Oncology and Nautilus Biotechnology 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 Nautilus Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ikena Oncology and Nautilus Biotechnology, you can compare the effects of market volatilities on Ikena Oncology and Nautilus Biotechnology 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 Nautilus Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ikena Oncology and Nautilus Biotechnology.
Diversification Opportunities for Ikena Oncology and Nautilus Biotechnology
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ikena and Nautilus is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Ikena Oncology and Nautilus Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nautilus Biotechnology 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 Nautilus Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nautilus Biotechnology has no effect on the direction of Ikena Oncology i.e., Ikena Oncology and Nautilus Biotechnology go up and down completely randomly.
Pair Corralation between Ikena Oncology and Nautilus Biotechnology
Given the investment horizon of 90 days Ikena Oncology is expected to generate 0.85 times more return on investment than Nautilus Biotechnology. However, Ikena Oncology is 1.18 times less risky than Nautilus Biotechnology. It trades about 0.05 of its potential returns per unit of risk. Nautilus Biotechnology is currently generating about 0.0 per unit of risk. If you would invest 136.00 in Ikena Oncology on September 1, 2024 and sell it today you would earn a total of 37.00 from holding Ikena Oncology or generate 27.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ikena Oncology vs. Nautilus Biotechnology
Performance |
| Timeline |
| Ikena Oncology |
| Nautilus Biotechnology |
Ikena Oncology and Nautilus Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ikena Oncology and Nautilus Biotechnology
The main advantage of trading using opposite Ikena Oncology and Nautilus Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ikena Oncology position performs unexpectedly, Nautilus Biotechnology 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 Nautilus Biotechnology will offset losses from the drop in Nautilus Biotechnology's long position.| Ikena Oncology vs. Edgewise Therapeutics | Ikena Oncology vs. Design Therapeutics | Ikena Oncology vs. Xilio Development | Ikena Oncology vs. Eliem Therapeutics |
| Nautilus Biotechnology vs. C4 Therapeutics | Nautilus Biotechnology vs. Kymera Therapeutics | Nautilus Biotechnology vs. Foghorn Therapeutics | Nautilus Biotechnology vs. Revolution Medicines |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |