Correlation Between HealthStream and Ikena Oncology
Can any of the company-specific risk be diversified away by investing in both HealthStream 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 HealthStream and Ikena Oncology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HealthStream and Ikena Oncology, you can compare the effects of market volatilities on HealthStream 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 HealthStream with a short position of Ikena Oncology. Check out your portfolio center. Please also check ongoing floating volatility patterns of HealthStream and Ikena Oncology.
Diversification Opportunities for HealthStream and Ikena Oncology
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HealthStream and Ikena is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding HealthStream and Ikena Oncology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ikena Oncology and HealthStream 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 HealthStream 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 HealthStream i.e., HealthStream and Ikena Oncology go up and down completely randomly.
Pair Corralation between HealthStream and Ikena Oncology
Given the investment horizon of 90 days HealthStream is expected to under-perform the Ikena Oncology. But the stock apears to be less risky and, when comparing its historical volatility, HealthStream is 2.77 times less risky than Ikena Oncology. The stock trades about -0.01 of its potential returns per unit of risk. The Ikena Oncology is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,380 in Ikena Oncology on May 28, 2025 and sell it today you would earn a total of 336.00 from holding Ikena Oncology or generate 24.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 67.74% |
| Values | Daily Returns |
HealthStream vs. Ikena Oncology
Performance |
| Timeline |
| HealthStream |
| Ikena Oncology |
Risk-Adjusted Performance
Good
Weak | Strong |
HealthStream and Ikena Oncology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HealthStream and Ikena Oncology
The main advantage of trading using opposite HealthStream and Ikena Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HealthStream 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.| HealthStream vs. TruBridge | HealthStream vs. National Research Corp | HealthStream vs. Forian Inc | HealthStream vs. HealthEquity |
| Ikena Oncology vs. Werewolf Therapeutics | Ikena Oncology vs. Edgewise Therapeutics | Ikena Oncology vs. Celcuity LLC | Ikena Oncology vs. C4 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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