Correlation Between Ikena Oncology and Instil Bio
Can any of the company-specific risk be diversified away by investing in both Ikena Oncology and Instil Bio 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 Instil Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ikena Oncology and Instil Bio, you can compare the effects of market volatilities on Ikena Oncology and Instil Bio 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 Instil Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ikena Oncology and Instil Bio.
Diversification Opportunities for Ikena Oncology and Instil Bio
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ikena and Instil is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Ikena Oncology and Instil Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Instil Bio 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 Instil Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Instil Bio has no effect on the direction of Ikena Oncology i.e., Ikena Oncology and Instil Bio go up and down completely randomly.
Pair Corralation between Ikena Oncology and Instil Bio
Given the investment horizon of 90 days Ikena Oncology is expected to under-perform the Instil Bio. But the stock apears to be less risky and, when comparing its historical volatility, Ikena Oncology is 11.22 times less risky than Instil Bio. The stock trades about -0.08 of its potential returns per unit of risk. The Instil Bio is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,323 in Instil Bio on August 25, 2024 and sell it today you would earn a total of 1,292 from holding Instil Bio or generate 97.66% 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. Instil Bio
Performance |
| Timeline |
| Ikena Oncology |
| Instil Bio |
Ikena Oncology and Instil Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ikena Oncology and Instil Bio
The main advantage of trading using opposite Ikena Oncology and Instil Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ikena Oncology position performs unexpectedly, Instil Bio 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 Instil Bio will offset losses from the drop in Instil Bio's long position.| Ikena Oncology vs. Eliem Therapeutics | Ikena Oncology vs. HCW Biologics | Ikena Oncology vs. RenovoRx | Ikena Oncology vs. Tempest Therapeutics |
| Instil Bio vs. Eliem Therapeutics | Instil Bio vs. HCW Biologics | Instil Bio vs. RenovoRx | Instil Bio vs. Tempest 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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