Correlation Between Ikena Oncology and Spyre Therapeutics
Can any of the company-specific risk be diversified away by investing in both Ikena Oncology and Spyre 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 Spyre 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 Spyre Therapeutics, you can compare the effects of market volatilities on Ikena Oncology and Spyre 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 Spyre Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ikena Oncology and Spyre Therapeutics.
Diversification Opportunities for Ikena Oncology and Spyre Therapeutics
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ikena and Spyre is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Ikena Oncology and Spyre Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spyre 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 Spyre Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spyre Therapeutics has no effect on the direction of Ikena Oncology i.e., Ikena Oncology and Spyre Therapeutics go up and down completely randomly.
Pair Corralation between Ikena Oncology and Spyre Therapeutics
Given the investment horizon of 90 days Ikena Oncology is expected to under-perform the Spyre Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Ikena Oncology is 1.67 times less risky than Spyre Therapeutics. The stock trades about -0.19 of its potential returns per unit of risk. The Spyre Therapeutics is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 2,082 in Spyre Therapeutics on November 28, 2024 and sell it today you would lose (182.00) from holding Spyre Therapeutics or give up 8.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ikena Oncology vs. Spyre Therapeutics
Performance |
| Timeline |
| Ikena Oncology |
| Spyre Therapeutics |
Ikena Oncology and Spyre Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ikena Oncology and Spyre Therapeutics
The main advantage of trading using opposite Ikena Oncology and Spyre Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ikena Oncology position performs unexpectedly, Spyre 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 Spyre Therapeutics will offset losses from the drop in Spyre Therapeutics' long position.| Ikena Oncology vs. Edgewise Therapeutics | Ikena Oncology vs. Design Therapeutics | Ikena Oncology vs. Xilio Development | Ikena Oncology vs. Monte Rosa Therapeutics |
| Spyre Therapeutics vs. Lincoln Educational Services | Spyre Therapeutics vs. Daily Journal Corp | Spyre Therapeutics vs. Adtalem Global Education | Spyre Therapeutics vs. Gannett Co |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |