Correlation Between Celcuity LLC and Ikena Oncology

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

By analyzing existing cross correlation between Celcuity LLC and Ikena Oncology, you can compare the effects of market volatilities on Celcuity LLC 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 Celcuity LLC with a short position of Ikena Oncology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celcuity LLC and Ikena Oncology.

Diversification Opportunities for Celcuity LLC and Ikena Oncology

0.08

Correlation Coefficient

Celcuity LLC  Ikena Oncology

Significant diversification

The 3 months correlation between Celcuity and Ikena is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Celcuity LLC and Ikena Oncology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ikena Oncology and Celcuity LLC 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 Celcuity LLC 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 Celcuity LLC i.e., Celcuity LLC and Ikena Oncology go up and down completely randomly.

Pair Corralation between Celcuity LLC and Ikena Oncology

Given the investment horizon of 90 days Celcuity LLC is expected to under-perform the Ikena Oncology. In addition to that, Celcuity LLC is 2.5 times more volatile than Ikena Oncology. It trades about -0.09 of its total potential returns per unit of risk. Ikena Oncology is currently generating about 0.04 per unit of volatility. If you would invest  169.00  in Ikena Oncology on September 2, 2024 and sell it today you would earn a total of  4.00  from holding Ikena Oncology or generate 2.37% return on investment over 90 days.

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

Celcuity LLC  vs.  Ikena Oncology

Celcuity LLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Celcuity LLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's essential indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Ikena Oncology

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Ikena Oncology are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Ikena Oncology is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Celcuity LLC and Ikena Oncology

The main advantage of trading using opposite Celcuity LLC and Ikena Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celcuity LLC 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.

The idea behind Celcuity LLC and Ikena Oncology 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.