Correlation Between Catalyst Biosciences and Ikena Oncology
Can any of the company-specific risk be diversified away by investing in both Catalyst Biosciences 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 Catalyst Biosciences and Ikena Oncology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalyst Biosciences and Ikena Oncology, you can compare the effects of market volatilities on Catalyst Biosciences 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 Catalyst Biosciences with a short position of Ikena Oncology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Biosciences and Ikena Oncology.
Diversification Opportunities for Catalyst Biosciences and Ikena Oncology
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Catalyst and Ikena is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Biosciences and Ikena Oncology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ikena Oncology and Catalyst Biosciences 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 Catalyst Biosciences 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 Catalyst Biosciences i.e., Catalyst Biosciences and Ikena Oncology go up and down completely randomly.
Pair Corralation between Catalyst Biosciences and Ikena Oncology
If you would invest 171.00 in Ikena Oncology on September 1, 2024 and sell it today you would earn a total of 2.00 from holding Ikena Oncology or generate 1.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Catalyst Biosciences vs. Ikena Oncology
Performance |
| Timeline |
| Catalyst Biosciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ikena Oncology |
Catalyst Biosciences and Ikena Oncology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Biosciences and Ikena Oncology
The main advantage of trading using opposite Catalyst Biosciences and Ikena Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Biosciences 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.| Catalyst Biosciences vs. Akari Therapeutics PLC | Catalyst Biosciences vs. Benitec Biopharma Ltd | Catalyst Biosciences vs. Pulmatrix |
| Ikena Oncology vs. Edgewise Therapeutics | Ikena Oncology vs. Design Therapeutics | Ikena Oncology vs. Xilio Development | Ikena Oncology vs. Eliem 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 Stocks Directory module to find actively traded stocks across global markets.
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