Correlation Between Kodiak Sciences and Ikena Oncology
Can any of the company-specific risk be diversified away by investing in both Kodiak Sciences and Ikena Oncology 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 Kodiak Sciences and Ikena Oncology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kodiak Sciences and Ikena Oncology, you can compare the effects of market volatilities on Kodiak Sciences and Ikena Oncology 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 Kodiak Sciences with a short position of Ikena Oncology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kodiak Sciences and Ikena Oncology.
Diversification Opportunities for Kodiak Sciences and Ikena Oncology
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kodiak and Ikena is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Kodiak Sciences and Ikena Oncology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ikena Oncology and Kodiak Sciences 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 Kodiak Sciences are associated (or correlated) with Ikena Oncology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ikena Oncology has no effect on the direction of Kodiak Sciences i.e., Kodiak Sciences and Ikena Oncology go up and down completely randomly.
Pair Corralation between Kodiak Sciences and Ikena Oncology
Considering the 90-day investment horizon Kodiak Sciences is expected to under-perform the Ikena Oncology. In addition to that, Kodiak Sciences is 4.27 times more volatile than Ikena Oncology. It trades about -0.27 of its total potential returns per unit of risk. Ikena Oncology is currently generating about -0.35 per unit of volatility. If you would invest 166.00 in Ikena Oncology on November 7, 2024 and sell it today you would lose (18.00) from holding Ikena Oncology or give up 10.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Kodiak Sciences vs. Ikena Oncology
Performance |
| Timeline |
| Kodiak Sciences |
| Ikena Oncology |
Kodiak Sciences and Ikena Oncology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kodiak Sciences and Ikena Oncology
The main advantage of trading using opposite Kodiak Sciences and Ikena Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kodiak Sciences position performs unexpectedly, Ikena Oncology 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 Ikena Oncology will offset losses from the drop in Ikena Oncology's long position.| Kodiak Sciences vs. Reviva Pharmaceuticals Holdings | Kodiak Sciences vs. Eyenovia | Kodiak Sciences vs. Cognition Therapeutics | Kodiak Sciences vs. Transcode Therapeutics |
| Ikena Oncology vs. Edgewise Therapeutics | Ikena Oncology vs. Design Therapeutics | Ikena Oncology vs. Xilio Development | Ikena Oncology vs. Monte Rosa 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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