Correlation Between Ikena Oncology and Surrozen
Can any of the company-specific risk be diversified away by investing in both Ikena Oncology and Surrozen 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 Surrozen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ikena Oncology and Surrozen, you can compare the effects of market volatilities on Ikena Oncology and Surrozen 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 Surrozen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ikena Oncology and Surrozen.
Diversification Opportunities for Ikena Oncology and Surrozen
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ikena and Surrozen is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Ikena Oncology and Surrozen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surrozen 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 Surrozen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surrozen has no effect on the direction of Ikena Oncology i.e., Ikena Oncology and Surrozen go up and down completely randomly.
Pair Corralation between Ikena Oncology and Surrozen
Given the investment horizon of 90 days Ikena Oncology is expected to under-perform the Surrozen. But the stock apears to be less risky and, when comparing its historical volatility, Ikena Oncology is 2.3 times less risky than Surrozen. The stock trades about -0.21 of its potential returns per unit of risk. The Surrozen is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,122 in Surrozen on November 27, 2024 and sell it today you would earn a total of 12.00 from holding Surrozen or generate 1.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ikena Oncology vs. Surrozen
Performance |
| Timeline |
| Ikena Oncology |
| Surrozen |
Ikena Oncology and Surrozen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ikena Oncology and Surrozen
The main advantage of trading using opposite Ikena Oncology and Surrozen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ikena Oncology position performs unexpectedly, Surrozen 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 Surrozen will offset losses from the drop in Surrozen's long position.| Ikena Oncology vs. Edgewise Therapeutics | Ikena Oncology vs. Design Therapeutics | Ikena Oncology vs. Xilio Development | Ikena Oncology vs. Monte Rosa Therapeutics |
| Surrozen vs. Bolt Biotherapeutics | Surrozen vs. Larimar Therapeutics | Surrozen vs. Keros Therapeutics | Surrozen vs. Kezar Life Sciences |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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