Correlation Between Ginkgo Bioworks and Aston Martin
Can any of the company-specific risk be diversified away by investing in both Ginkgo Bioworks and Aston Martin 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 Aston Martin 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 Aston Martin Lagonda, you can compare the effects of market volatilities on Ginkgo Bioworks and Aston Martin 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 Aston Martin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ginkgo Bioworks and Aston Martin.
Diversification Opportunities for Ginkgo Bioworks and Aston Martin
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ginkgo and Aston is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Ginkgo Bioworks Holdings and Aston Martin Lagonda in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aston Martin Lagonda 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 Aston Martin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aston Martin Lagonda has no effect on the direction of Ginkgo Bioworks i.e., Ginkgo Bioworks and Aston Martin go up and down completely randomly.
Pair Corralation between Ginkgo Bioworks and Aston Martin
Considering the 90-day investment horizon Ginkgo Bioworks Holdings is expected to under-perform the Aston Martin. In addition to that, Ginkgo Bioworks is 1.31 times more volatile than Aston Martin Lagonda. It trades about -0.04 of its total potential returns per unit of risk. Aston Martin Lagonda is currently generating about -0.02 per unit of volatility. If you would invest 239.00 in Aston Martin Lagonda on November 9, 2024 and sell it today you would lose (107.00) from holding Aston Martin Lagonda or give up 44.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
Ginkgo Bioworks Holdings vs. Aston Martin Lagonda
Performance |
| Timeline |
| Ginkgo Bioworks Holdings |
| Aston Martin Lagonda |
Ginkgo Bioworks and Aston Martin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ginkgo Bioworks and Aston Martin
The main advantage of trading using opposite Ginkgo Bioworks and Aston Martin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ginkgo Bioworks position performs unexpectedly, Aston Martin 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 Aston Martin will offset losses from the drop in Aston Martin's long position.| Ginkgo Bioworks vs. Ocean Biomedical | Ginkgo Bioworks vs. Enveric Biosciences | Ginkgo Bioworks vs. Hepion Pharmaceuticals | Ginkgo Bioworks vs. Elevation Oncology |
| Aston Martin vs. Polestar Automotive Holding | Aston Martin vs. Geely Automobile Holdings | Aston Martin vs. Mercedes Benz Group AG | Aston Martin vs. Porsche Automobile Holding |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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