Correlation Between Terns Pharmaceuticals and Icon Energy
Can any of the company-specific risk be diversified away by investing in both Terns Pharmaceuticals and Icon Energy 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 Terns Pharmaceuticals and Icon Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Terns Pharmaceuticals and Icon Energy Corp, you can compare the effects of market volatilities on Terns Pharmaceuticals and Icon Energy 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 Terns Pharmaceuticals with a short position of Icon Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Terns Pharmaceuticals and Icon Energy.
Diversification Opportunities for Terns Pharmaceuticals and Icon Energy
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Terns and Icon is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Terns Pharmaceuticals and Icon Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Energy Corp and Terns Pharmaceuticals 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 Terns Pharmaceuticals are associated (or correlated) with Icon Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Energy Corp has no effect on the direction of Terns Pharmaceuticals i.e., Terns Pharmaceuticals and Icon Energy go up and down completely randomly.
Pair Corralation between Terns Pharmaceuticals and Icon Energy
Given the investment horizon of 90 days Terns Pharmaceuticals is expected to generate 3.03 times more return on investment than Icon Energy. However, Terns Pharmaceuticals is 3.03 times more volatile than Icon Energy Corp. It trades about 0.22 of its potential returns per unit of risk. Icon Energy Corp is currently generating about -0.3 per unit of risk. If you would invest 676.00 in Terns Pharmaceuticals on August 16, 2025 and sell it today you would earn a total of 1,397 from holding Terns Pharmaceuticals or generate 206.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Terns Pharmaceuticals vs. Icon Energy Corp
Performance |
| Timeline |
| Terns Pharmaceuticals |
| Icon Energy Corp |
Terns Pharmaceuticals and Icon Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Terns Pharmaceuticals and Icon Energy
The main advantage of trading using opposite Terns Pharmaceuticals and Icon Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Terns Pharmaceuticals position performs unexpectedly, Icon Energy 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 Icon Energy will offset losses from the drop in Icon Energy's long position.| Terns Pharmaceuticals vs. Oric Pharmaceuticals | Terns Pharmaceuticals vs. Precigen | Terns Pharmaceuticals vs. Immatics NV | Terns Pharmaceuticals vs. Enliven Therapeutics |
| Icon Energy vs. Digital Ally | Icon Energy vs. Erayak Power Solution | Icon Energy vs. Lichen China Limited | Icon Energy vs. C3is Inc |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |