Correlation Between Ginkgo Bioworks and Amarin PLC
Can any of the company-specific risk be diversified away by investing in both Ginkgo Bioworks and Amarin PLC 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 Amarin PLC 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 Amarin PLC, you can compare the effects of market volatilities on Ginkgo Bioworks and Amarin PLC 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 Amarin PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ginkgo Bioworks and Amarin PLC.
Diversification Opportunities for Ginkgo Bioworks and Amarin PLC
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ginkgo and Amarin is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Ginkgo Bioworks Holdings and Amarin PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amarin 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 Amarin PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amarin PLC has no effect on the direction of Ginkgo Bioworks i.e., Ginkgo Bioworks and Amarin PLC go up and down completely randomly.
Pair Corralation between Ginkgo Bioworks and Amarin PLC
Considering the 90-day investment horizon Ginkgo Bioworks Holdings is expected to under-perform the Amarin PLC. In addition to that, Ginkgo Bioworks is 1.31 times more volatile than Amarin PLC. It trades about -0.05 of its total potential returns per unit of risk. Amarin PLC is currently generating about -0.03 per unit of volatility. If you would invest 107.00 in Amarin PLC on September 12, 2024 and sell it today you would lose (60.20) from holding Amarin PLC or give up 56.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ginkgo Bioworks Holdings vs. Amarin PLC
Performance |
| Timeline |
| Ginkgo Bioworks Holdings |
| Amarin PLC |
Ginkgo Bioworks and Amarin PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ginkgo Bioworks and Amarin PLC
The main advantage of trading using opposite Ginkgo Bioworks and Amarin PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ginkgo Bioworks position performs unexpectedly, Amarin PLC 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 Amarin PLC will offset losses from the drop in Amarin PLC's long position.| Ginkgo Bioworks vs. Ocean Biomedical | Ginkgo Bioworks vs. Enveric Biosciences | Ginkgo Bioworks vs. Hepion Pharmaceuticals | Ginkgo Bioworks vs. Elevation Oncology |
| Amarin PLC vs. Scilex Holding | Amarin PLC vs. Biogen Inc | Amarin PLC vs. Gilead Sciences | Amarin PLC vs. AstraZeneca PLC ADR |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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