Correlation Between Ginkgo Bioworks and ABPRO P
Can any of the company-specific risk be diversified away by investing in both Ginkgo Bioworks and ABPRO P 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 Ginkgo Bioworks and ABPRO P into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ginkgo Bioworks Holdings and ABPRO P, you can compare the effects of market volatilities on Ginkgo Bioworks and ABPRO P 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 Ginkgo Bioworks with a short position of ABPRO P. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ginkgo Bioworks and ABPRO P.
Diversification Opportunities for Ginkgo Bioworks and ABPRO P
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ginkgo and ABPRO is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Ginkgo Bioworks Holdings and ABPRO P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABPRO P and Ginkgo Bioworks 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 Ginkgo Bioworks Holdings are associated (or correlated) with ABPRO P. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABPRO P has no effect on the direction of Ginkgo Bioworks i.e., Ginkgo Bioworks and ABPRO P go up and down completely randomly.
Pair Corralation between Ginkgo Bioworks and ABPRO P
Considering the 90-day investment horizon Ginkgo Bioworks Holdings is expected to generate 1.19 times more return on investment than ABPRO P. However, Ginkgo Bioworks is 1.19 times more volatile than ABPRO P. It trades about -0.08 of its potential returns per unit of risk. ABPRO P is currently generating about -0.11 per unit of risk. If you would invest 6,320 in Ginkgo Bioworks Holdings on September 12, 2024 and sell it today you would lose (5,250) from holding Ginkgo Bioworks Holdings or give up 83.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Ginkgo Bioworks Holdings vs. ABPRO P
Performance |
| Timeline |
| Ginkgo Bioworks Holdings |
| ABPRO P |
Ginkgo Bioworks and ABPRO P Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ginkgo Bioworks and ABPRO P
The main advantage of trading using opposite Ginkgo Bioworks and ABPRO P positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ginkgo Bioworks position performs unexpectedly, ABPRO P 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 ABPRO P will offset losses from the drop in ABPRO P's long position.| Ginkgo Bioworks vs. Ocean Biomedical | Ginkgo Bioworks vs. Enveric Biosciences | Ginkgo Bioworks vs. Hepion Pharmaceuticals | Ginkgo Bioworks vs. Elevation Oncology |
| ABPRO P vs. Equillium | ABPRO P vs. DiaMedica Therapeutics | ABPRO P vs. Valneva SE ADR | ABPRO P vs. Vivani Medical |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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