Correlation Between Ginkgo Bioworks and BioNTech
Can any of the company-specific risk be diversified away by investing in both Ginkgo Bioworks and BioNTech 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 BioNTech 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 BioNTech SE, you can compare the effects of market volatilities on Ginkgo Bioworks and BioNTech 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 BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ginkgo Bioworks and BioNTech.
Diversification Opportunities for Ginkgo Bioworks and BioNTech
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ginkgo and BioNTech is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Ginkgo Bioworks Holdings and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE 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 BioNTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioNTech SE has no effect on the direction of Ginkgo Bioworks i.e., Ginkgo Bioworks and BioNTech go up and down completely randomly.
Pair Corralation between Ginkgo Bioworks and BioNTech
Considering the 90-day investment horizon Ginkgo Bioworks Holdings is expected to generate 2.57 times more return on investment than BioNTech. However, Ginkgo Bioworks is 2.57 times more volatile than BioNTech SE. It trades about 0.09 of its potential returns per unit of risk. BioNTech SE is currently generating about -0.01 per unit of risk. If you would invest 1,008 in Ginkgo Bioworks Holdings on October 21, 2024 and sell it today you would earn a total of 75.00 from holding Ginkgo Bioworks Holdings or generate 7.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ginkgo Bioworks Holdings vs. BioNTech SE
Performance |
| Timeline |
| Ginkgo Bioworks Holdings |
| BioNTech SE |
Ginkgo Bioworks and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ginkgo Bioworks and BioNTech
The main advantage of trading using opposite Ginkgo Bioworks and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ginkgo Bioworks position performs unexpectedly, BioNTech 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 BioNTech will offset losses from the drop in BioNTech's long position.| Ginkgo Bioworks vs. Ocean Biomedical | Ginkgo Bioworks vs. Enveric Biosciences | Ginkgo Bioworks vs. Hepion Pharmaceuticals | Ginkgo Bioworks vs. Elevation Oncology |
| BioNTech vs. Novavax | BioNTech vs. Ginkgo Bioworks Holdings | BioNTech vs. Crispr Therapeutics AG | BioNTech vs. Ocean Biomedical |
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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