Correlation Between NexGel Warrant and Ikena Oncology
Can any of the company-specific risk be diversified away by investing in both NexGel Warrant 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 NexGel Warrant and Ikena Oncology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NexGel Warrant and Ikena Oncology, you can compare the effects of market volatilities on NexGel Warrant 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 NexGel Warrant with a short position of Ikena Oncology. Check out your portfolio center. Please also check ongoing floating volatility patterns of NexGel Warrant and Ikena Oncology.
Diversification Opportunities for NexGel Warrant and Ikena Oncology
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NexGel and Ikena is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding NexGel Warrant and Ikena Oncology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ikena Oncology and NexGel Warrant 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 NexGel Warrant 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 NexGel Warrant i.e., NexGel Warrant and Ikena Oncology go up and down completely randomly.
Pair Corralation between NexGel Warrant and Ikena Oncology
Assuming the 90 days horizon NexGel Warrant is expected to generate 15.73 times more return on investment than Ikena Oncology. However, NexGel Warrant is 15.73 times more volatile than Ikena Oncology. It trades about 0.1 of its potential returns per unit of risk. Ikena Oncology is currently generating about -0.03 per unit of risk. If you would invest 18.00 in NexGel Warrant on August 30, 2024 and sell it today you would earn a total of 28.30 from holding NexGel Warrant or generate 157.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 69.04% |
| Values | Daily Returns |
NexGel Warrant vs. Ikena Oncology
Performance |
| Timeline |
| NexGel Warrant |
| Ikena Oncology |
NexGel Warrant and Ikena Oncology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NexGel Warrant and Ikena Oncology
The main advantage of trading using opposite NexGel Warrant and Ikena Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NexGel Warrant 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.| NexGel Warrant vs. Nexgel Inc | NexGel Warrant vs. NLS Pharmaceutics AG | NexGel Warrant vs. NeuroSense Therapeutics Ltd | NexGel Warrant vs. Pasithea Therapeutics Corp |
| Ikena Oncology vs. Edgewise Therapeutics | Ikena Oncology vs. Design Therapeutics | Ikena Oncology vs. Xilio Development | Ikena Oncology vs. Eliem 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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