Correlation Between Ikena Oncology and Bolt Biotherapeutics
Can any of the company-specific risk be diversified away by investing in both Ikena Oncology and Bolt Biotherapeutics 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 Bolt Biotherapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ikena Oncology and Bolt Biotherapeutics, you can compare the effects of market volatilities on Ikena Oncology and Bolt Biotherapeutics 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 Bolt Biotherapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ikena Oncology and Bolt Biotherapeutics.
Diversification Opportunities for Ikena Oncology and Bolt Biotherapeutics
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ikena and Bolt is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Ikena Oncology and Bolt Biotherapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bolt Biotherapeutics 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 Bolt Biotherapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bolt Biotherapeutics has no effect on the direction of Ikena Oncology i.e., Ikena Oncology and Bolt Biotherapeutics go up and down completely randomly.
Pair Corralation between Ikena Oncology and Bolt Biotherapeutics
Given the investment horizon of 90 days Ikena Oncology is expected to generate 0.53 times more return on investment than Bolt Biotherapeutics. However, Ikena Oncology is 1.9 times less risky than Bolt Biotherapeutics. It trades about -0.01 of its potential returns per unit of risk. Bolt Biotherapeutics is currently generating about -0.21 per unit of risk. 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 |
Ikena Oncology vs. Bolt Biotherapeutics
Performance |
| Timeline |
| Ikena Oncology |
| Bolt Biotherapeutics |
Ikena Oncology and Bolt Biotherapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ikena Oncology and Bolt Biotherapeutics
The main advantage of trading using opposite Ikena Oncology and Bolt Biotherapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ikena Oncology position performs unexpectedly, Bolt Biotherapeutics 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 Bolt Biotherapeutics will offset losses from the drop in Bolt Biotherapeutics' long position.| Ikena Oncology vs. Eliem Therapeutics | Ikena Oncology vs. HCW Biologics | Ikena Oncology vs. Scpharmaceuticals | Ikena Oncology vs. Milestone Pharmaceuticals |
| Bolt Biotherapeutics vs. Eliem Therapeutics | Bolt Biotherapeutics vs. HCW Biologics | Bolt Biotherapeutics vs. Scpharmaceuticals | Bolt Biotherapeutics 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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