Correlation Between Armata Pharmaceuticals and Ginkgo Bioworks
Can any of the company-specific risk be diversified away by investing in both Armata Pharmaceuticals and Ginkgo Bioworks 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 Armata Pharmaceuticals and Ginkgo Bioworks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Armata Pharmaceuticals and Ginkgo Bioworks Holdings, you can compare the effects of market volatilities on Armata Pharmaceuticals and Ginkgo Bioworks 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 Armata Pharmaceuticals with a short position of Ginkgo Bioworks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armata Pharmaceuticals and Ginkgo Bioworks.
Diversification Opportunities for Armata Pharmaceuticals and Ginkgo Bioworks
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Armata and Ginkgo is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Armata Pharmaceuticals and Ginkgo Bioworks Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ginkgo Bioworks Holdings and Armata Pharmaceuticals 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 Armata Pharmaceuticals are associated (or correlated) with Ginkgo Bioworks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ginkgo Bioworks Holdings has no effect on the direction of Armata Pharmaceuticals i.e., Armata Pharmaceuticals and Ginkgo Bioworks go up and down completely randomly.
Pair Corralation between Armata Pharmaceuticals and Ginkgo Bioworks
Given the investment horizon of 90 days Armata Pharmaceuticals is expected to generate 2.52 times less return on investment than Ginkgo Bioworks. But when comparing it to its historical volatility, Armata Pharmaceuticals is 2.03 times less risky than Ginkgo Bioworks. It trades about 0.17 of its potential returns per unit of risk. Ginkgo Bioworks Holdings is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 982.00 in Ginkgo Bioworks Holdings on November 1, 2024 and sell it today you would earn a total of 267.00 from holding Ginkgo Bioworks Holdings or generate 27.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Armata Pharmaceuticals vs. Ginkgo Bioworks Holdings
Performance |
| Timeline |
| Armata Pharmaceuticals |
| Ginkgo Bioworks Holdings |
Armata Pharmaceuticals and Ginkgo Bioworks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armata Pharmaceuticals and Ginkgo Bioworks
The main advantage of trading using opposite Armata Pharmaceuticals and Ginkgo Bioworks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armata Pharmaceuticals position performs unexpectedly, Ginkgo Bioworks 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 Ginkgo Bioworks will offset losses from the drop in Ginkgo Bioworks' long position.The idea behind Armata Pharmaceuticals and Ginkgo Bioworks Holdings 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.| Ginkgo Bioworks vs. Surrozen | Ginkgo Bioworks vs. Armata Pharmaceuticals | Ginkgo Bioworks vs. Pasithea Therapeutics Corp | Ginkgo Bioworks vs. Aditxt 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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