Correlation Between Ikena Oncology and Zivo Bioscience
Can any of the company-specific risk be diversified away by investing in both Ikena Oncology and Zivo Bioscience 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 Zivo Bioscience into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ikena Oncology and Zivo Bioscience, you can compare the effects of market volatilities on Ikena Oncology and Zivo Bioscience 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 Zivo Bioscience. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ikena Oncology and Zivo Bioscience.
Diversification Opportunities for Ikena Oncology and Zivo Bioscience
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ikena and Zivo is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Ikena Oncology and Zivo Bioscience in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zivo Bioscience 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 Zivo Bioscience. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zivo Bioscience has no effect on the direction of Ikena Oncology i.e., Ikena Oncology and Zivo Bioscience go up and down completely randomly.
Pair Corralation between Ikena Oncology and Zivo Bioscience
Given the investment horizon of 90 days Ikena Oncology is expected to generate 1.1 times more return on investment than Zivo Bioscience. However, Ikena Oncology is 1.1 times more volatile than Zivo Bioscience. It trades about 0.01 of its potential returns per unit of risk. Zivo Bioscience is currently generating about -0.06 per unit of risk. If you would invest 330.00 in Ikena Oncology on November 2, 2024 and sell it today you would lose (182.00) from holding Ikena Oncology or give up 55.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 22.67% |
| Values | Daily Returns |
Ikena Oncology vs. Zivo Bioscience
Performance |
| Timeline |
| Ikena Oncology |
| Zivo Bioscience |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ikena Oncology and Zivo Bioscience Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ikena Oncology and Zivo Bioscience
The main advantage of trading using opposite Ikena Oncology and Zivo Bioscience positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ikena Oncology position performs unexpectedly, Zivo Bioscience 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 Zivo Bioscience will offset losses from the drop in Zivo Bioscience's long position.| Ikena Oncology vs. Edgewise Therapeutics | Ikena Oncology vs. Design Therapeutics | Ikena Oncology vs. Xilio Development | Ikena Oncology vs. Monte Rosa Therapeutics |
| Zivo Bioscience vs. RenovoRx | Zivo Bioscience vs. Pasithea Therapeutics Corp | Zivo Bioscience vs. Quoin Pharmaceuticals Ltd | Zivo Bioscience vs. Erasca Inc |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |