Correlation Between Ginkgo Bioworks and Oracle
Can any of the company-specific risk be diversified away by investing in both Ginkgo Bioworks and Oracle 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 Oracle 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 Oracle, you can compare the effects of market volatilities on Ginkgo Bioworks and Oracle 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 Oracle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ginkgo Bioworks and Oracle.
Diversification Opportunities for Ginkgo Bioworks and Oracle
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ginkgo and Oracle is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Ginkgo Bioworks Holdings and Oracle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oracle 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 Oracle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oracle has no effect on the direction of Ginkgo Bioworks i.e., Ginkgo Bioworks and Oracle go up and down completely randomly.
Pair Corralation between Ginkgo Bioworks and Oracle
Considering the 90-day investment horizon Ginkgo Bioworks Holdings is expected to generate 2.57 times more return on investment than Oracle. However, Ginkgo Bioworks is 2.57 times more volatile than Oracle. It trades about 0.27 of its potential returns per unit of risk. Oracle is currently generating about 0.18 per unit of risk. If you would invest 937.00 in Ginkgo Bioworks Holdings on October 25, 2024 and sell it today you would earn a total of 353.00 from holding Ginkgo Bioworks Holdings or generate 37.67% 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. Oracle
Performance |
| Timeline |
| Ginkgo Bioworks Holdings |
| Oracle |
Ginkgo Bioworks and Oracle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ginkgo Bioworks and Oracle
The main advantage of trading using opposite Ginkgo Bioworks and Oracle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ginkgo Bioworks position performs unexpectedly, Oracle 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 Oracle will offset losses from the drop in Oracle's long position.| Ginkgo Bioworks vs. Ocean Biomedical | Ginkgo Bioworks vs. Enveric Biosciences | Ginkgo Bioworks vs. Hepion Pharmaceuticals | Ginkgo Bioworks vs. Elevation Oncology |
| Oracle vs. Palo Alto Networks | Oracle vs. Crowdstrike Holdings | Oracle vs. Microsoft | Oracle vs. BLOCK INC |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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