Correlation Between Ikena Oncology and Universe Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Ikena Oncology and Universe 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 Universe 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 Universe Pharmaceuticals, you can compare the effects of market volatilities on Ikena Oncology and Universe 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 Universe Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ikena Oncology and Universe Pharmaceuticals.
Diversification Opportunities for Ikena Oncology and Universe Pharmaceuticals
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ikena and Universe is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Ikena Oncology and Universe Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universe 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 Universe Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universe Pharmaceuticals has no effect on the direction of Ikena Oncology i.e., Ikena Oncology and Universe Pharmaceuticals go up and down completely randomly.
Pair Corralation between Ikena Oncology and Universe Pharmaceuticals
Given the investment horizon of 90 days Ikena Oncology is expected to generate 0.12 times more return on investment than Universe Pharmaceuticals. However, Ikena Oncology is 8.06 times less risky than Universe Pharmaceuticals. It trades about -0.04 of its potential returns per unit of risk. Universe Pharmaceuticals is currently generating about -0.14 per unit of risk. If you would invest 173.00 in Ikena Oncology on August 30, 2024 and sell it today you would lose (4.00) from holding Ikena Oncology or give up 2.31% 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. Universe Pharmaceuticals
Performance |
| Timeline |
| Ikena Oncology |
| Universe Pharmaceuticals |
Ikena Oncology and Universe Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ikena Oncology and Universe Pharmaceuticals
The main advantage of trading using opposite Ikena Oncology and Universe Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ikena Oncology position performs unexpectedly, Universe 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 Universe Pharmaceuticals will offset losses from the drop in Universe Pharmaceuticals' long position.| Ikena Oncology vs. Edgewise Therapeutics | Ikena Oncology vs. Design Therapeutics | Ikena Oncology vs. Xilio Development | Ikena Oncology vs. Eliem Therapeutics |
| Universe Pharmaceuticals vs. Ikena Oncology | Universe Pharmaceuticals vs. Eliem Therapeutics | Universe Pharmaceuticals vs. HCW Biologics | Universe Pharmaceuticals vs. RenovoRx |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |