Correlation Between Ginkgo Bioworks and Intellia Therapeutics
Can any of the company-specific risk be diversified away by investing in both Ginkgo Bioworks and Intellia 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 Intellia 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 Intellia Therapeutics, you can compare the effects of market volatilities on Ginkgo Bioworks and Intellia 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 Intellia Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ginkgo Bioworks and Intellia Therapeutics.
Diversification Opportunities for Ginkgo Bioworks and Intellia Therapeutics
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ginkgo and Intellia is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Ginkgo Bioworks Holdings and Intellia Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intellia 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 Intellia Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intellia Therapeutics has no effect on the direction of Ginkgo Bioworks i.e., Ginkgo Bioworks and Intellia Therapeutics go up and down completely randomly.
Pair Corralation between Ginkgo Bioworks and Intellia Therapeutics
Considering the 90-day investment horizon Ginkgo Bioworks Holdings is expected to generate 1.39 times more return on investment than Intellia Therapeutics. However, Ginkgo Bioworks is 1.39 times more volatile than Intellia Therapeutics. It trades about 0.27 of its potential returns per unit of risk. Intellia Therapeutics is currently generating about -0.07 per unit of risk. If you would invest 982.00 in Ginkgo Bioworks Holdings on November 1, 2024 and sell it today you would earn a total of 409.00 from holding Ginkgo Bioworks Holdings or generate 41.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ginkgo Bioworks Holdings vs. Intellia Therapeutics
Performance |
| Timeline |
| Ginkgo Bioworks Holdings |
| Intellia Therapeutics |
Ginkgo Bioworks and Intellia Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ginkgo Bioworks and Intellia Therapeutics
The main advantage of trading using opposite Ginkgo Bioworks and Intellia Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ginkgo Bioworks position performs unexpectedly, Intellia 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 Intellia Therapeutics will offset losses from the drop in Intellia Therapeutics' long position.| Ginkgo Bioworks vs. Surrozen | Ginkgo Bioworks vs. Armata Pharmaceuticals | Ginkgo Bioworks vs. Pasithea Therapeutics Corp | Ginkgo Bioworks vs. Aditxt Inc |
| Intellia Therapeutics vs. Editas Medicine | Intellia Therapeutics vs. Caribou Biosciences | Intellia Therapeutics vs. Crispr Therapeutics AG | Intellia Therapeutics vs. Verve 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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