Correlation Between Ginkgo Bioworks and Beam Therapeutics
Can any of the company-specific risk be diversified away by investing in both Ginkgo Bioworks and Beam Therapeutics 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 Beam Therapeutics 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 Beam Therapeutics, you can compare the effects of market volatilities on Ginkgo Bioworks and Beam Therapeutics 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 Beam Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ginkgo Bioworks and Beam Therapeutics.
Diversification Opportunities for Ginkgo Bioworks and Beam Therapeutics
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ginkgo and Beam is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Ginkgo Bioworks Holdings and Beam Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beam Therapeutics 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 Beam Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beam Therapeutics has no effect on the direction of Ginkgo Bioworks i.e., Ginkgo Bioworks and Beam Therapeutics go up and down completely randomly.
Pair Corralation between Ginkgo Bioworks and Beam Therapeutics
Considering the 90-day investment horizon Ginkgo Bioworks Holdings is expected to under-perform the Beam Therapeutics. In addition to that, Ginkgo Bioworks is 1.65 times more volatile than Beam Therapeutics. It trades about -0.12 of its total potential returns per unit of risk. Beam Therapeutics is currently generating about 0.02 per unit of volatility. If you would invest 2,422 in Beam Therapeutics on August 24, 2024 and sell it today you would lose (64.00) from holding Beam Therapeutics or give up 2.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ginkgo Bioworks Holdings vs. Beam Therapeutics
Performance |
| Timeline |
| Ginkgo Bioworks Holdings |
| Beam Therapeutics |
Ginkgo Bioworks and Beam Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ginkgo Bioworks and Beam Therapeutics
The main advantage of trading using opposite Ginkgo Bioworks and Beam Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ginkgo Bioworks position performs unexpectedly, Beam Therapeutics 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 Beam Therapeutics will offset losses from the drop in Beam Therapeutics' long position.| Ginkgo Bioworks vs. ZyVersa Therapeutics | Ginkgo Bioworks vs. Sonnet Biotherapeutics Holdings | Ginkgo Bioworks vs. Zura Bio Limited | Ginkgo Bioworks vs. Phio Pharmaceuticals Corp |
| Beam Therapeutics vs. Editas Medicine | Beam Therapeutics vs. Crispr Therapeutics AG | Beam Therapeutics vs. Caribou Biosciences | Beam Therapeutics vs. Verve Therapeutics |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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