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
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ginkgo and Sana is -0.04. 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 under-perform the Sana Biotechnology. But the stock apears to be less risky and, when comparing its historical volatility, Ginkgo Bioworks Holdings is 1.51 times less risky than Sana Biotechnology. The stock trades about -0.02 of its potential returns per unit of risk. The Sana Biotechnology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 349.00 in Sana Biotechnology on November 1, 2024 and sell it today you would earn a total of 0.00 from holding Sana Biotechnology or generate 0.0% 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. 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. Surrozen | Ginkgo Bioworks vs. Armata Pharmaceuticals | Ginkgo Bioworks vs. Pasithea Therapeutics Corp | Ginkgo Bioworks vs. Aditxt Inc |
| Sana Biotechnology vs. Olema Pharmaceuticals | Sana Biotechnology vs. Cullinan Oncology LLC | Sana Biotechnology vs. Zentalis Pharmaceuticals Llc | Sana Biotechnology vs. X4 Pharmaceuticals |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |