Correlation Between Ginkgo Bioworks and SDX Energy
Can any of the company-specific risk be diversified away by investing in both Ginkgo Bioworks and SDX Energy 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 SDX Energy 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 SDX Energy plc, you can compare the effects of market volatilities on Ginkgo Bioworks and SDX Energy 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 SDX Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ginkgo Bioworks and SDX Energy.
Diversification Opportunities for Ginkgo Bioworks and SDX Energy
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ginkgo and SDX is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Ginkgo Bioworks Holdings and SDX Energy plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SDX Energy plc 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 SDX Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SDX Energy plc has no effect on the direction of Ginkgo Bioworks i.e., Ginkgo Bioworks and SDX Energy go up and down completely randomly.
Pair Corralation between Ginkgo Bioworks and SDX Energy
Considering the 90-day investment horizon Ginkgo Bioworks Holdings is expected to under-perform the SDX Energy. But the stock apears to be less risky and, when comparing its historical volatility, Ginkgo Bioworks Holdings is 5.25 times less risky than SDX Energy. The stock trades about -0.04 of its potential returns per unit of risk. The SDX Energy plc is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1.42 in SDX Energy plc on November 9, 2024 and sell it today you would lose (1.29) from holding SDX Energy plc or give up 90.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.89% |
| Values | Daily Returns |
Ginkgo Bioworks Holdings vs. SDX Energy plc
Performance |
| Timeline |
| Ginkgo Bioworks Holdings |
| SDX Energy plc |
Ginkgo Bioworks and SDX Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ginkgo Bioworks and SDX Energy
The main advantage of trading using opposite Ginkgo Bioworks and SDX Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ginkgo Bioworks position performs unexpectedly, SDX Energy 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 SDX Energy will offset losses from the drop in SDX Energy's long position.| Ginkgo Bioworks vs. Ocean Biomedical | Ginkgo Bioworks vs. Enveric Biosciences | Ginkgo Bioworks vs. Hepion Pharmaceuticals | Ginkgo Bioworks vs. Elevation Oncology |
| SDX Energy vs. 1st NRG Corp | SDX Energy vs. Petro Viking Energy | SDX Energy vs. Otto Energy Limited | SDX Energy vs. Empire Petroleum 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 Stocks Directory module to find actively traded stocks across global markets.
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