Correlation Between Ginkgo Bioworks and Acurx Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Ginkgo Bioworks and Acurx Pharmaceuticals 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 Acurx Pharmaceuticals 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 Acurx Pharmaceuticals LLC, you can compare the effects of market volatilities on Ginkgo Bioworks and Acurx Pharmaceuticals 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 Acurx Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ginkgo Bioworks and Acurx Pharmaceuticals.
Diversification Opportunities for Ginkgo Bioworks and Acurx Pharmaceuticals
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ginkgo and Acurx is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Ginkgo Bioworks Holdings and Acurx Pharmaceuticals LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acurx Pharmaceuticals LLC 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 Acurx Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acurx Pharmaceuticals LLC has no effect on the direction of Ginkgo Bioworks i.e., Ginkgo Bioworks and Acurx Pharmaceuticals go up and down completely randomly.
Pair Corralation between Ginkgo Bioworks and Acurx Pharmaceuticals
Considering the 90-day investment horizon Ginkgo Bioworks Holdings is expected to generate 0.96 times more return on investment than Acurx Pharmaceuticals. However, Ginkgo Bioworks Holdings is 1.04 times less risky than Acurx Pharmaceuticals. It trades about 0.15 of its potential returns per unit of risk. Acurx Pharmaceuticals LLC is currently generating about -0.34 per unit of risk. If you would invest 876.00 in Ginkgo Bioworks Holdings on September 12, 2024 and sell it today you would earn a total of 194.00 from holding Ginkgo Bioworks Holdings or generate 22.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ginkgo Bioworks Holdings vs. Acurx Pharmaceuticals LLC
Performance |
| Timeline |
| Ginkgo Bioworks Holdings |
| Acurx Pharmaceuticals LLC |
Ginkgo Bioworks and Acurx Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ginkgo Bioworks and Acurx Pharmaceuticals
The main advantage of trading using opposite Ginkgo Bioworks and Acurx Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ginkgo Bioworks position performs unexpectedly, Acurx Pharmaceuticals 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 Acurx Pharmaceuticals will offset losses from the drop in Acurx Pharmaceuticals' long position.| Ginkgo Bioworks vs. Ocean Biomedical | Ginkgo Bioworks vs. Enveric Biosciences | Ginkgo Bioworks vs. Hepion Pharmaceuticals | Ginkgo Bioworks vs. Elevation Oncology |
| Acurx Pharmaceuticals vs. Aerovate Therapeutics | Acurx Pharmaceuticals vs. Adagene | Acurx Pharmaceuticals vs. Acrivon Therapeutics, Common | Acurx Pharmaceuticals vs. Rezolute |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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