Correlation Between Ginkgo Bioworks and Generation Bio
Can any of the company-specific risk be diversified away by investing in both Ginkgo Bioworks and Generation Bio 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 Generation Bio 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 Generation Bio Co, you can compare the effects of market volatilities on Ginkgo Bioworks and Generation Bio 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 Generation Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ginkgo Bioworks and Generation Bio.
Diversification Opportunities for Ginkgo Bioworks and Generation Bio
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ginkgo and Generation is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Ginkgo Bioworks Holdings and Generation Bio Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Generation Bio 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 Generation Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Generation Bio has no effect on the direction of Ginkgo Bioworks i.e., Ginkgo Bioworks and Generation Bio go up and down completely randomly.
Pair Corralation between Ginkgo Bioworks and Generation Bio
Considering the 90-day investment horizon Ginkgo Bioworks Holdings is expected to under-perform the Generation Bio. In addition to that, Ginkgo Bioworks is 1.02 times more volatile than Generation Bio Co. It trades about -0.09 of its total potential returns per unit of risk. Generation Bio Co is currently generating about 0.0 per unit of volatility. If you would invest 189.00 in Generation Bio Co on September 14, 2024 and sell it today you would lose (75.00) from holding Generation Bio Co or give up 39.68% 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. Generation Bio Co
Performance |
| Timeline |
| Ginkgo Bioworks Holdings |
| Generation Bio |
Ginkgo Bioworks and Generation Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ginkgo Bioworks and Generation Bio
The main advantage of trading using opposite Ginkgo Bioworks and Generation Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ginkgo Bioworks position performs unexpectedly, Generation Bio 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 Generation Bio will offset losses from the drop in Generation Bio's long position.| Ginkgo Bioworks vs. Ocean Biomedical | Ginkgo Bioworks vs. Enveric Biosciences | Ginkgo Bioworks vs. Hepion Pharmaceuticals | Ginkgo Bioworks vs. Elevation Oncology |
| Generation Bio vs. Monte Rosa Therapeutics | Generation Bio vs. Nkarta Inc | Generation Bio vs. Lyell Immunopharma | Generation Bio vs. Sana Biotechnology |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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