Correlation Between Ikena Oncology and Quoin Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Ikena Oncology and Quoin Pharmaceuticals 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 Quoin Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ikena Oncology and Quoin Pharmaceuticals Ltd, you can compare the effects of market volatilities on Ikena Oncology and Quoin Pharmaceuticals 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 Quoin Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ikena Oncology and Quoin Pharmaceuticals.
Diversification Opportunities for Ikena Oncology and Quoin Pharmaceuticals
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ikena and Quoin is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Ikena Oncology and Quoin Pharmaceuticals Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quoin Pharmaceuticals 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 Quoin Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quoin Pharmaceuticals has no effect on the direction of Ikena Oncology i.e., Ikena Oncology and Quoin Pharmaceuticals go up and down completely randomly.
Pair Corralation between Ikena Oncology and Quoin Pharmaceuticals
Given the investment horizon of 90 days Ikena Oncology is expected to generate 0.75 times more return on investment than Quoin Pharmaceuticals. However, Ikena Oncology is 1.33 times less risky than Quoin Pharmaceuticals. It trades about 0.01 of its potential returns per unit of risk. Quoin Pharmaceuticals Ltd is currently generating about -0.08 per unit of risk. If you would invest 330.00 in Ikena Oncology on November 2, 2024 and sell it today you would lose (182.00) from holding Ikena Oncology or give up 55.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ikena Oncology vs. Quoin Pharmaceuticals Ltd
Performance |
| Timeline |
| Ikena Oncology |
| Quoin Pharmaceuticals |
Ikena Oncology and Quoin Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ikena Oncology and Quoin Pharmaceuticals
The main advantage of trading using opposite Ikena Oncology and Quoin Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ikena Oncology position performs unexpectedly, Quoin Pharmaceuticals 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 Quoin Pharmaceuticals will offset losses from the drop in Quoin Pharmaceuticals' long position.| Ikena Oncology vs. Edgewise Therapeutics | Ikena Oncology vs. Design Therapeutics | Ikena Oncology vs. Xilio Development | Ikena Oncology vs. Monte Rosa Therapeutics |
| Quoin Pharmaceuticals vs. Revelation Biosciences | Quoin Pharmaceuticals vs. Virax Biolabs Group | Quoin Pharmaceuticals vs. Allarity Therapeutics | Quoin Pharmaceuticals vs. Biodexa Pharmaceticals |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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