Correlation Between Ikena Oncology and Apogee Therapeutics,

Can any of the company-specific risk be diversified away by investing in both Ikena Oncology and Apogee Therapeutics, 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 Apogee Therapeutics, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ikena Oncology and Apogee Therapeutics, Common, you can compare the effects of market volatilities on Ikena Oncology and Apogee Therapeutics, 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 Apogee Therapeutics,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ikena Oncology and Apogee Therapeutics,.

Diversification Opportunities for Ikena Oncology and Apogee Therapeutics,

0.67

Correlation Coefficient

Ikena Oncology  Apogee Therapeutics,

Poor diversification

The 3 months correlation between Ikena and Apogee is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Ikena Oncology and Apogee Therapeutics, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apogee Therapeutics, 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 Apogee Therapeutics,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apogee Therapeutics, has no effect on the direction of Ikena Oncology i.e., Ikena Oncology and Apogee Therapeutics, go up and down completely randomly.

Pair Corralation between Ikena Oncology and Apogee Therapeutics,

Given the investment horizon of 90 days Ikena Oncology is expected to under-perform the Apogee Therapeutics,. But the stock apears to be less risky and, when comparing its historical volatility, Ikena Oncology is 1.94 times less risky than Apogee Therapeutics,. The stock trades about -0.13 of its potential returns per unit of risk. The Apogee Therapeutics, Common is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  4,464  in Apogee Therapeutics, Common on December 28, 2024 and sell it today you would lose (492.00) from holding Apogee Therapeutics, Common or give up 11.02% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Ikena Oncology  vs.  Apogee Therapeutics, Common

Ikena Oncology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ikena Oncology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Apogee Therapeutics,

Risk-Adjusted Performance

Very Weak

Over the last 90 days Apogee Therapeutics, Common has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Apogee Therapeutics, is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Ikena Oncology and Apogee Therapeutics,

The main advantage of trading using opposite Ikena Oncology and Apogee Therapeutics, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ikena Oncology position performs unexpectedly, Apogee Therapeutics, 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 Apogee Therapeutics, will offset losses from the drop in Apogee Therapeutics,'s long position.

The idea behind Ikena Oncology and Apogee Therapeutics, Common pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.