Correlation Between Ikena Oncology and Valneva SE
Can any of the company-specific risk be diversified away by investing in both Ikena Oncology and Valneva SE 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 Valneva SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ikena Oncology and Valneva SE ADR, you can compare the effects of market volatilities on Ikena Oncology and Valneva SE 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 Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ikena Oncology and Valneva SE.
Diversification Opportunities for Ikena Oncology and Valneva SE
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ikena and Valneva is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Ikena Oncology and Valneva SE ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valneva SE ADR 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 Valneva SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valneva SE ADR has no effect on the direction of Ikena Oncology i.e., Ikena Oncology and Valneva SE go up and down completely randomly.
Pair Corralation between Ikena Oncology and Valneva SE
Given the investment horizon of 90 days Ikena Oncology is expected to generate 1.72 times more return on investment than Valneva SE. However, Ikena Oncology is 1.72 times more volatile than Valneva SE ADR. It trades about -0.03 of its potential returns per unit of risk. Valneva SE ADR is currently generating about -0.08 per unit of risk. If you would invest 675.00 in Ikena Oncology on September 2, 2024 and sell it today you would lose (502.00) from holding Ikena Oncology or give up 74.37% 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. Valneva SE ADR
Performance |
| Timeline |
| Ikena Oncology |
| Valneva SE ADR |
Ikena Oncology and Valneva SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ikena Oncology and Valneva SE
The main advantage of trading using opposite Ikena Oncology and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ikena Oncology position performs unexpectedly, Valneva SE 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 Valneva SE will offset losses from the drop in Valneva SE's long position.| Ikena Oncology vs. Edgewise Therapeutics | Ikena Oncology vs. Design Therapeutics | Ikena Oncology vs. Xilio Development | Ikena Oncology vs. Eliem Therapeutics |
| Valneva SE vs. Tff Pharmaceuticals | Valneva SE vs. Eliem Therapeutics | Valneva SE vs. Inhibrx | Valneva SE vs. Enliven 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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