Correlation Between Ginkgo Bioworks and Global Crossing
Can any of the company-specific risk be diversified away by investing in both Ginkgo Bioworks and Global Crossing 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 Global Crossing 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 Global Crossing Airlines, you can compare the effects of market volatilities on Ginkgo Bioworks and Global Crossing 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 Global Crossing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ginkgo Bioworks and Global Crossing.
Diversification Opportunities for Ginkgo Bioworks and Global Crossing
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ginkgo and Global is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Ginkgo Bioworks Holdings and Global Crossing Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Crossing Airlines 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 Global Crossing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Crossing Airlines has no effect on the direction of Ginkgo Bioworks i.e., Ginkgo Bioworks and Global Crossing go up and down completely randomly.
Pair Corralation between Ginkgo Bioworks and Global Crossing
Considering the 90-day investment horizon Ginkgo Bioworks is expected to generate 1.8 times less return on investment than Global Crossing. In addition to that, Ginkgo Bioworks is 1.25 times more volatile than Global Crossing Airlines. It trades about 0.17 of its total potential returns per unit of risk. Global Crossing Airlines is currently generating about 0.39 per unit of volatility. If you would invest 47.00 in Global Crossing Airlines on November 7, 2024 and sell it today you would earn a total of 25.00 from holding Global Crossing Airlines or generate 53.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ginkgo Bioworks Holdings vs. Global Crossing Airlines
Performance |
| Timeline |
| Ginkgo Bioworks Holdings |
| Global Crossing Airlines |
Ginkgo Bioworks and Global Crossing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ginkgo Bioworks and Global Crossing
The main advantage of trading using opposite Ginkgo Bioworks and Global Crossing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ginkgo Bioworks position performs unexpectedly, Global Crossing 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 Global Crossing will offset losses from the drop in Global Crossing's long position.| Ginkgo Bioworks vs. Ocean Biomedical | Ginkgo Bioworks vs. Enveric Biosciences | Ginkgo Bioworks vs. Hepion Pharmaceuticals | Ginkgo Bioworks vs. Elevation Oncology |
| Global Crossing vs. Finnair Oyj | Global Crossing vs. easyJet plc | Global Crossing vs. Norse Atlantic ASA | Global Crossing vs. Air New Zealand |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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