Correlation Between Ikena Oncology and CohBar

Can any of the company-specific risk be diversified away by investing in both Ikena Oncology and CohBar 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 CohBar into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ikena Oncology and CohBar Inc, you can compare the effects of market volatilities on Ikena Oncology and CohBar 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 CohBar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ikena Oncology and CohBar.

Diversification Opportunities for Ikena Oncology and CohBar

-0.21

Correlation Coefficient

Ikena Oncology  CohBar

Very good diversification

The 3 months correlation between Ikena and CohBar is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Ikena Oncology and CohBar Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CohBar Inc 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 CohBar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CohBar Inc has no effect on the direction of Ikena Oncology i.e., Ikena Oncology and CohBar go up and down completely randomly.

Pair Corralation between Ikena Oncology and CohBar

If you would invest  299.00  in CohBar Inc on September 28, 2024 and sell it today you would earn a total of  0.00  from holding CohBar Inc or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

Ikena Oncology  vs.  CohBar Inc

Ikena Oncology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ikena Oncology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

CohBar Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CohBar Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental drivers, CohBar is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Ikena Oncology and CohBar

The main advantage of trading using opposite Ikena Oncology and CohBar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ikena Oncology position performs unexpectedly, CohBar 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 CohBar will offset losses from the drop in CohBar's long position.

The idea behind Ikena Oncology and CohBar Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Transaction History module to view history of all your transactions and understand their impact on performance.