Correlation Between Ikena Oncology and Achilles Therapeutics

Can any of the company-specific risk be diversified away by investing in both Ikena Oncology and Achilles 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 Achilles 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 Achilles Therapeutics PLC, you can compare the effects of market volatilities on Ikena Oncology and Achilles 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 Achilles Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ikena Oncology and Achilles Therapeutics.

Diversification Opportunities for Ikena Oncology and Achilles Therapeutics

0.58

Correlation Coefficient

Ikena Oncology  Achilles Therapeutics

Very weak diversification

The 3 months correlation between Ikena and Achilles is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Ikena Oncology and Achilles Therapeutics PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Achilles Therapeutics PLC 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 Achilles Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Achilles Therapeutics PLC has no effect on the direction of Ikena Oncology i.e., Ikena Oncology and Achilles Therapeutics go up and down completely randomly.

Pair Corralation between Ikena Oncology and Achilles Therapeutics

If you would invest  1,344  in Ikena Oncology on May 6, 2025 and sell it today you would earn a total of  372.00  from holding Ikena Oncology or generate 27.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	1.75%
Values	Daily Returns

Ikena Oncology  vs.  Achilles Therapeutics PLC

Ikena Oncology

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ikena Oncology are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting basic indicators, Ikena Oncology sustained solid returns over the last few months and may actually be approaching a breakup point.

Achilles Therapeutics PLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Achilles Therapeutics PLC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical indicators, Achilles Therapeutics is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Ikena Oncology and Achilles Therapeutics

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

The idea behind Ikena Oncology and Achilles Therapeutics PLC 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.

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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.