Correlation Between Ikena Oncology and Bright Minds
Can any of the company-specific risk be diversified away by investing in both Ikena Oncology and Bright Minds 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 Bright Minds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ikena Oncology and Bright Minds Biosciences, you can compare the effects of market volatilities on Ikena Oncology and Bright Minds 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 Bright Minds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ikena Oncology and Bright Minds.
Diversification Opportunities for Ikena Oncology and Bright Minds
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ikena and Bright is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Ikena Oncology and Bright Minds Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bright Minds Biosciences 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 Bright Minds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bright Minds Biosciences has no effect on the direction of Ikena Oncology i.e., Ikena Oncology and Bright Minds go up and down completely randomly.
Pair Corralation between Ikena Oncology and Bright Minds
Given the investment horizon of 90 days Ikena Oncology is expected to generate 0.21 times more return on investment than Bright Minds. However, Ikena Oncology is 4.73 times less risky than Bright Minds. It trades about -0.03 of its potential returns per unit of risk. Bright Minds Biosciences is currently generating about -0.06 per unit of risk. If you would invest 171.00 in Ikena Oncology on August 30, 2024 and sell it today you would lose (2.00) from holding Ikena Oncology or give up 1.17% 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. Bright Minds Biosciences
Performance |
| Timeline |
| Ikena Oncology |
| Bright Minds Biosciences |
Ikena Oncology and Bright Minds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ikena Oncology and Bright Minds
The main advantage of trading using opposite Ikena Oncology and Bright Minds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ikena Oncology position performs unexpectedly, Bright Minds 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 Bright Minds will offset losses from the drop in Bright Minds' long position.| Ikena Oncology vs. Edgewise Therapeutics | Ikena Oncology vs. Design Therapeutics | Ikena Oncology vs. Xilio Development | Ikena Oncology vs. Eliem Therapeutics |
| Bright Minds vs. Ikena Oncology | Bright Minds vs. Eliem Therapeutics | Bright Minds vs. HCW Biologics | Bright Minds vs. RenovoRx |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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