Correlation Between Ginkgo Bioworks and Fate Therapeutics
Can any of the company-specific risk be diversified away by investing in both Ginkgo Bioworks and Fate 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 Fate 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 Fate Therapeutics, you can compare the effects of market volatilities on Ginkgo Bioworks and Fate 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 Fate Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ginkgo Bioworks and Fate Therapeutics.
Diversification Opportunities for Ginkgo Bioworks and Fate Therapeutics
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ginkgo and Fate is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Ginkgo Bioworks Holdings and Fate Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fate 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 Fate Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fate Therapeutics has no effect on the direction of Ginkgo Bioworks i.e., Ginkgo Bioworks and Fate Therapeutics go up and down completely randomly.
Pair Corralation between Ginkgo Bioworks and Fate Therapeutics
Considering the 90-day investment horizon Ginkgo Bioworks Holdings is expected to under-perform the Fate Therapeutics. In addition to that, Ginkgo Bioworks is 1.26 times more volatile than Fate Therapeutics. It trades about -0.12 of its total potential returns per unit of risk. Fate Therapeutics is currently generating about -0.05 per unit of volatility. If you would invest 354.00 in Fate Therapeutics on August 24, 2024 and sell it today you would lose (147.00) from holding Fate Therapeutics or give up 41.53% 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. Fate Therapeutics
Performance |
| Timeline |
| Ginkgo Bioworks Holdings |
| Fate Therapeutics |
Ginkgo Bioworks and Fate Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ginkgo Bioworks and Fate Therapeutics
The main advantage of trading using opposite Ginkgo Bioworks and Fate Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ginkgo Bioworks position performs unexpectedly, Fate 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 Fate Therapeutics will offset losses from the drop in Fate 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 |
| Fate Therapeutics vs. ZyVersa Therapeutics | Fate Therapeutics vs. Sonnet Biotherapeutics Holdings | Fate Therapeutics vs. Zura Bio Limited | Fate Therapeutics vs. Phio Pharmaceuticals Corp |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Commodity Directory Find actively traded commodities issued by global exchanges |