Correlation Between Ginkgo Bioworks and Elevation Oncology
Can any of the company-specific risk be diversified away by investing in both Ginkgo Bioworks and Elevation Oncology 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 Elevation Oncology 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 Elevation Oncology, you can compare the effects of market volatilities on Ginkgo Bioworks and Elevation Oncology 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 Elevation Oncology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ginkgo Bioworks and Elevation Oncology.
Diversification Opportunities for Ginkgo Bioworks and Elevation Oncology
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ginkgo and Elevation is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Ginkgo Bioworks Holdings and Elevation Oncology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elevation Oncology 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 Elevation Oncology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elevation Oncology has no effect on the direction of Ginkgo Bioworks i.e., Ginkgo Bioworks and Elevation Oncology go up and down completely randomly.
Pair Corralation between Ginkgo Bioworks and Elevation Oncology
Considering the 90-day investment horizon Ginkgo Bioworks Holdings is expected to under-perform the Elevation Oncology. But the stock apears to be less risky and, when comparing its historical volatility, Ginkgo Bioworks Holdings is 1.78 times less risky than Elevation Oncology. The stock trades about -0.05 of its potential returns per unit of risk. The Elevation Oncology is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 95.00 in Elevation Oncology on August 26, 2024 and sell it today you would lose (35.00) from holding Elevation Oncology or give up 36.84% 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. Elevation Oncology
Performance |
| Timeline |
| Ginkgo Bioworks Holdings |
| Elevation Oncology |
Ginkgo Bioworks and Elevation Oncology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ginkgo Bioworks and Elevation Oncology
The main advantage of trading using opposite Ginkgo Bioworks and Elevation Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ginkgo Bioworks position performs unexpectedly, Elevation Oncology 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 Elevation Oncology will offset losses from the drop in Elevation Oncology's long position.| Ginkgo Bioworks vs. Eliem Therapeutics | Ginkgo Bioworks vs. HCW Biologics | Ginkgo Bioworks vs. Scpharmaceuticals | Ginkgo Bioworks vs. Milestone Pharmaceuticals |
| Elevation Oncology vs. Eliem Therapeutics | Elevation Oncology vs. HCW Biologics | Elevation Oncology vs. Scpharmaceuticals | Elevation Oncology vs. Milestone Pharmaceuticals |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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