Correlation Between Ginkgo Bioworks and Horizon Kinetics
Can any of the company-specific risk be diversified away by investing in both Ginkgo Bioworks and Horizon Kinetics 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 Horizon Kinetics 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 Horizon Kinetics Medical, you can compare the effects of market volatilities on Ginkgo Bioworks and Horizon Kinetics 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 Horizon Kinetics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ginkgo Bioworks and Horizon Kinetics.
Diversification Opportunities for Ginkgo Bioworks and Horizon Kinetics
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ginkgo and Horizon is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Ginkgo Bioworks Holdings and Horizon Kinetics Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horizon Kinetics Medical 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 Horizon Kinetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horizon Kinetics Medical has no effect on the direction of Ginkgo Bioworks i.e., Ginkgo Bioworks and Horizon Kinetics go up and down completely randomly.
Pair Corralation between Ginkgo Bioworks and Horizon Kinetics
Considering the 90-day investment horizon Ginkgo Bioworks Holdings is expected to under-perform the Horizon Kinetics. In addition to that, Ginkgo Bioworks is 7.1 times more volatile than Horizon Kinetics Medical. It trades about -0.08 of its total potential returns per unit of risk. Horizon Kinetics Medical is currently generating about 0.01 per unit of volatility. If you would invest 2,721 in Horizon Kinetics Medical on September 14, 2024 and sell it today you would earn a total of 31.50 from holding Horizon Kinetics Medical or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ginkgo Bioworks Holdings vs. Horizon Kinetics Medical
Performance |
| Timeline |
| Ginkgo Bioworks Holdings |
| Horizon Kinetics Medical |
Ginkgo Bioworks and Horizon Kinetics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ginkgo Bioworks and Horizon Kinetics
The main advantage of trading using opposite Ginkgo Bioworks and Horizon Kinetics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ginkgo Bioworks position performs unexpectedly, Horizon Kinetics 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 Horizon Kinetics will offset losses from the drop in Horizon Kinetics' long position.| Ginkgo Bioworks vs. Ocean Biomedical | Ginkgo Bioworks vs. Enveric Biosciences | Ginkgo Bioworks vs. Hepion Pharmaceuticals | Ginkgo Bioworks vs. Elevation Oncology |
| Horizon Kinetics vs. Invesco DWA Industrials | Horizon Kinetics vs. Invesco DWA Consumer | Horizon Kinetics vs. Invesco DWA Consumer | Horizon Kinetics vs. Invesco DWA Basic |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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