Correlation Between Ikena Oncology and Protagenic Therapeutics
Can any of the company-specific risk be diversified away by investing in both Ikena Oncology and Protagenic Therapeutics 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 Protagenic Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ikena Oncology and Protagenic Therapeutics, you can compare the effects of market volatilities on Ikena Oncology and Protagenic Therapeutics 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 Protagenic Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ikena Oncology and Protagenic Therapeutics.
Diversification Opportunities for Ikena Oncology and Protagenic Therapeutics
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ikena and Protagenic is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Ikena Oncology and Protagenic Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Protagenic Therapeutics 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 Protagenic Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Protagenic Therapeutics has no effect on the direction of Ikena Oncology i.e., Ikena Oncology and Protagenic Therapeutics go up and down completely randomly.
Pair Corralation between Ikena Oncology and Protagenic Therapeutics
Given the investment horizon of 90 days Ikena Oncology is expected to generate 0.15 times more return on investment than Protagenic Therapeutics. However, Ikena Oncology is 6.62 times less risky than Protagenic Therapeutics. It trades about 0.04 of its potential returns per unit of risk. Protagenic Therapeutics is currently generating about -0.01 per unit of risk. If you would invest 171.00 in Ikena Oncology on September 1, 2024 and sell it today you would earn a total of 2.00 from holding Ikena Oncology or generate 1.17% 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. Protagenic Therapeutics
Performance |
| Timeline |
| Ikena Oncology |
| Protagenic Therapeutics |
Ikena Oncology and Protagenic Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ikena Oncology and Protagenic Therapeutics
The main advantage of trading using opposite Ikena Oncology and Protagenic Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ikena Oncology position performs unexpectedly, Protagenic Therapeutics 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 Protagenic Therapeutics will offset losses from the drop in Protagenic Therapeutics' long position.| Ikena Oncology vs. Edgewise Therapeutics | Ikena Oncology vs. Design Therapeutics | Ikena Oncology vs. Xilio Development | Ikena Oncology vs. Eliem Therapeutics |
| Protagenic Therapeutics vs. Sino Biopharmaceutical Ltd | Protagenic Therapeutics vs. Eledon Pharmaceuticals | Protagenic Therapeutics vs. Rezolute | Protagenic Therapeutics vs. XOMA Corporation |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |