Correlation Between Ikena Oncology and TC BioPharm
Can any of the company-specific risk be diversified away by investing in both Ikena Oncology and TC BioPharm 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 TC BioPharm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ikena Oncology and TC BioPharm plc, you can compare the effects of market volatilities on Ikena Oncology and TC BioPharm 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 TC BioPharm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ikena Oncology and TC BioPharm.
Diversification Opportunities for Ikena Oncology and TC BioPharm
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ikena and TCBPW is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Ikena Oncology and TC BioPharm plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TC BioPharm plc 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 TC BioPharm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TC BioPharm plc has no effect on the direction of Ikena Oncology i.e., Ikena Oncology and TC BioPharm go up and down completely randomly.
Pair Corralation between Ikena Oncology and TC BioPharm
Given the investment horizon of 90 days Ikena Oncology is expected to under-perform the TC BioPharm. But the stock apears to be less risky and, when comparing its historical volatility, Ikena Oncology is 20.16 times less risky than TC BioPharm. The stock trades about -0.01 of its potential returns per unit of risk. The TC BioPharm plc is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1.91 in TC BioPharm plc on August 27, 2024 and sell it today you would lose (0.31) from holding TC BioPharm plc or give up 16.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ikena Oncology vs. TC BioPharm plc
Performance |
| Timeline |
| Ikena Oncology |
| TC BioPharm plc |
Ikena Oncology and TC BioPharm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ikena Oncology and TC BioPharm
The main advantage of trading using opposite Ikena Oncology and TC BioPharm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ikena Oncology position performs unexpectedly, TC BioPharm 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 TC BioPharm will offset losses from the drop in TC BioPharm's long position.| Ikena Oncology vs. Eliem Therapeutics | Ikena Oncology vs. HCW Biologics | Ikena Oncology vs. Scpharmaceuticals | Ikena Oncology vs. Milestone Pharmaceuticals |
| TC BioPharm vs. bioAffinity Technologies Warrant | TC BioPharm vs. American Rebel Holdings | TC BioPharm vs. Alvotech Warrant | TC BioPharm vs. Inspira Technologies Oxy |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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