Correlation Between Ikena Oncology and Replimune
Can any of the company-specific risk be diversified away by investing in both Ikena Oncology and Replimune 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 Replimune into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ikena Oncology and Replimune Group, you can compare the effects of market volatilities on Ikena Oncology and Replimune 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 Replimune. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ikena Oncology and Replimune.
Diversification Opportunities for Ikena Oncology and Replimune
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ikena and Replimune is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Ikena Oncology and Replimune Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Replimune Group 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 Replimune. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Replimune Group has no effect on the direction of Ikena Oncology i.e., Ikena Oncology and Replimune go up and down completely randomly.
Pair Corralation between Ikena Oncology and Replimune
Given the investment horizon of 90 days Ikena Oncology is expected to under-perform the Replimune. But the stock apears to be less risky and, when comparing its historical volatility, Ikena Oncology is 2.97 times less risky than Replimune. The stock trades about -0.27 of its potential returns per unit of risk. The Replimune Group is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,256 in Replimune Group on November 3, 2024 and sell it today you would earn a total of 142.00 from holding Replimune Group or generate 11.31% 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. Replimune Group
Performance |
| Timeline |
| Ikena Oncology |
| Replimune Group |
Ikena Oncology and Replimune Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ikena Oncology and Replimune
The main advantage of trading using opposite Ikena Oncology and Replimune positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ikena Oncology position performs unexpectedly, Replimune 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 Replimune will offset losses from the drop in Replimune's long position.| Ikena Oncology vs. Edgewise Therapeutics | Ikena Oncology vs. Design Therapeutics | Ikena Oncology vs. Xilio Development | Ikena Oncology vs. Monte Rosa Therapeutics |
| Replimune vs. Nuvalent | Replimune vs. Ventyx Biosciences | Replimune vs. Ascendis Pharma AS | Replimune vs. United 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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