Correlation Between Ginkgo Bioworks and Kinnate Biopharma
Can any of the company-specific risk be diversified away by investing in both Ginkgo Bioworks and Kinnate Biopharma 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 Kinnate Biopharma 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 Kinnate Biopharma, you can compare the effects of market volatilities on Ginkgo Bioworks and Kinnate Biopharma 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 Kinnate Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ginkgo Bioworks and Kinnate Biopharma.
Diversification Opportunities for Ginkgo Bioworks and Kinnate Biopharma
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ginkgo and Kinnate is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Ginkgo Bioworks Holdings and Kinnate Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinnate Biopharma 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 Kinnate Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinnate Biopharma has no effect on the direction of Ginkgo Bioworks i.e., Ginkgo Bioworks and Kinnate Biopharma go up and down completely randomly.
Pair Corralation between Ginkgo Bioworks and Kinnate Biopharma
Considering the 90-day investment horizon Ginkgo Bioworks Holdings is expected to generate 0.85 times more return on investment than Kinnate Biopharma. However, Ginkgo Bioworks Holdings is 1.17 times less risky than Kinnate Biopharma. It trades about -0.06 of its potential returns per unit of risk. Kinnate Biopharma is currently generating about -0.08 per unit of risk. If you would invest 7,840 in Ginkgo Bioworks Holdings on August 27, 2024 and sell it today you would lose (7,122) from holding Ginkgo Bioworks Holdings or give up 90.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 25.71% |
| Values | Daily Returns |
Ginkgo Bioworks Holdings vs. Kinnate Biopharma
Performance |
| Timeline |
| Ginkgo Bioworks Holdings |
| Kinnate Biopharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ginkgo Bioworks and Kinnate Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ginkgo Bioworks and Kinnate Biopharma
The main advantage of trading using opposite Ginkgo Bioworks and Kinnate Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ginkgo Bioworks position performs unexpectedly, Kinnate Biopharma 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 Kinnate Biopharma will offset losses from the drop in Kinnate Biopharma's long position.| Ginkgo Bioworks vs. Eliem Therapeutics | Ginkgo Bioworks vs. HCW Biologics | Ginkgo Bioworks vs. Scpharmaceuticals | Ginkgo Bioworks vs. Milestone Pharmaceuticals |
| Kinnate Biopharma vs. ACELYRIN, INC Common | Kinnate Biopharma vs. Windtree Therapeutics | Kinnate Biopharma vs. Palisade Bio | Kinnate Biopharma vs. Century Therapeutics |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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