Correlation Between Ginkgo Bioworks and Ashmore Group
Can any of the company-specific risk be diversified away by investing in both Ginkgo Bioworks and Ashmore Group 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 Ashmore Group 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 Ashmore Group Plc, you can compare the effects of market volatilities on Ginkgo Bioworks and Ashmore Group 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 Ashmore Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ginkgo Bioworks and Ashmore Group.
Diversification Opportunities for Ginkgo Bioworks and Ashmore Group
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ginkgo and Ashmore is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Ginkgo Bioworks Holdings and Ashmore Group Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ashmore Group Plc 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 Ashmore Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ashmore Group Plc has no effect on the direction of Ginkgo Bioworks i.e., Ginkgo Bioworks and Ashmore Group go up and down completely randomly.
Pair Corralation between Ginkgo Bioworks and Ashmore Group
Considering the 90-day investment horizon Ginkgo Bioworks Holdings is expected to generate 4.21 times more return on investment than Ashmore Group. However, Ginkgo Bioworks is 4.21 times more volatile than Ashmore Group Plc. It trades about 0.21 of its potential returns per unit of risk. Ashmore Group Plc is currently generating about -0.23 per unit of risk. 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 | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Ginkgo Bioworks Holdings vs. Ashmore Group Plc
Performance |
| Timeline |
| Ginkgo Bioworks Holdings |
| Ashmore Group Plc |
Ginkgo Bioworks and Ashmore Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ginkgo Bioworks and Ashmore Group
The main advantage of trading using opposite Ginkgo Bioworks and Ashmore Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ginkgo Bioworks position performs unexpectedly, Ashmore Group 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 Ashmore Group will offset losses from the drop in Ashmore Group's long position.| Ginkgo Bioworks vs. Surrozen | Ginkgo Bioworks vs. Armata Pharmaceuticals | Ginkgo Bioworks vs. Pasithea Therapeutics Corp | Ginkgo Bioworks vs. Aditxt Inc |
| Ashmore Group vs. Morgan Stanley China | Ashmore Group vs. Central Europe Russia | Ashmore Group vs. Morgan Stanley India | Ashmore Group vs. Nuveen Missouri Quality |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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