Correlation Between Bolt Biotherapeutics and Ikena Oncology
Can any of the company-specific risk be diversified away by investing in both Bolt Biotherapeutics 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 Bolt Biotherapeutics and Ikena Oncology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bolt Biotherapeutics and Ikena Oncology, you can compare the effects of market volatilities on Bolt Biotherapeutics 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 Bolt Biotherapeutics with a short position of Ikena Oncology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bolt Biotherapeutics and Ikena Oncology.
Diversification Opportunities for Bolt Biotherapeutics and Ikena Oncology
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bolt and Ikena is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Bolt Biotherapeutics and Ikena Oncology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ikena Oncology and Bolt Biotherapeutics 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 Bolt Biotherapeutics 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 Bolt Biotherapeutics i.e., Bolt Biotherapeutics and Ikena Oncology go up and down completely randomly.
Pair Corralation between Bolt Biotherapeutics and Ikena Oncology
Given the investment horizon of 90 days Bolt Biotherapeutics is expected to under-perform the Ikena Oncology. In addition to that, Bolt Biotherapeutics is 1.9 times more volatile than Ikena Oncology. It trades about -0.21 of its total potential returns per unit of risk. Ikena Oncology is currently generating about -0.01 per unit of volatility. If you would invest 172.00 in Ikena Oncology on August 28, 2024 and sell it today you would lose (1.00) from holding Ikena Oncology or give up 0.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bolt Biotherapeutics vs. Ikena Oncology
Performance |
| Timeline |
| Bolt Biotherapeutics |
| Ikena Oncology |
Bolt Biotherapeutics and Ikena Oncology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bolt Biotherapeutics and Ikena Oncology
The main advantage of trading using opposite Bolt Biotherapeutics and Ikena Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bolt Biotherapeutics 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.| Bolt Biotherapeutics vs. Eliem Therapeutics | Bolt Biotherapeutics vs. HCW Biologics | Bolt Biotherapeutics vs. Scpharmaceuticals | Bolt Biotherapeutics vs. Milestone Pharmaceuticals |
| Ikena Oncology vs. Eliem Therapeutics | Ikena Oncology vs. HCW Biologics | Ikena Oncology vs. Scpharmaceuticals | Ikena Oncology vs. Milestone Pharmaceuticals |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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