Correlation Between Ginkgo Bioworks and Sana Biotechnology
Can any of the company-specific risk be diversified away by investing in both Ginkgo Bioworks and Sana Biotechnology 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 Sana Biotechnology 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 Sana Biotechnology, you can compare the effects of market volatilities on Ginkgo Bioworks and Sana Biotechnology 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 Sana Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ginkgo Bioworks and Sana Biotechnology.
Diversification Opportunities for Ginkgo Bioworks and Sana Biotechnology
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ginkgo and Sana is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Ginkgo Bioworks Holdings and Sana Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sana Biotechnology 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 Sana Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sana Biotechnology has no effect on the direction of Ginkgo Bioworks i.e., Ginkgo Bioworks and Sana Biotechnology go up and down completely randomly.
Pair Corralation between Ginkgo Bioworks and Sana Biotechnology
Considering the 90-day investment horizon Ginkgo Bioworks Holdings is expected to generate 1.49 times more return on investment than Sana Biotechnology. However, Ginkgo Bioworks is 1.49 times more volatile than Sana Biotechnology. It trades about -0.12 of its potential returns per unit of risk. Sana Biotechnology is currently generating about -0.19 per unit of risk. If you would invest 2,500 in Ginkgo Bioworks Holdings on August 24, 2024 and sell it today you would lose (1,841) from holding Ginkgo Bioworks Holdings or give up 73.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ginkgo Bioworks Holdings vs. Sana Biotechnology
Performance |
| Timeline |
| Ginkgo Bioworks Holdings |
| Sana Biotechnology |
Ginkgo Bioworks and Sana Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ginkgo Bioworks and Sana Biotechnology
The main advantage of trading using opposite Ginkgo Bioworks and Sana Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ginkgo Bioworks position performs unexpectedly, Sana Biotechnology 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 Sana Biotechnology will offset losses from the drop in Sana Biotechnology's long position.| Ginkgo Bioworks vs. ZyVersa Therapeutics | Ginkgo Bioworks vs. Sonnet Biotherapeutics Holdings | Ginkgo Bioworks vs. Zura Bio Limited | Ginkgo Bioworks vs. Phio Pharmaceuticals Corp |
| Sana Biotechnology vs. ZyVersa Therapeutics | Sana Biotechnology vs. Sonnet Biotherapeutics Holdings | Sana Biotechnology vs. Zura Bio Limited | Sana Biotechnology vs. Phio Pharmaceuticals Corp |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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