Correlation Between Ginkgo Bioworks and Xenetic Biosciences
Can any of the company-specific risk be diversified away by investing in both Ginkgo Bioworks and Xenetic Biosciences 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 Xenetic Biosciences 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 Xenetic Biosciences, you can compare the effects of market volatilities on Ginkgo Bioworks and Xenetic Biosciences 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 Xenetic Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ginkgo Bioworks and Xenetic Biosciences.
Diversification Opportunities for Ginkgo Bioworks and Xenetic Biosciences
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ginkgo and Xenetic is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Ginkgo Bioworks Holdings and Xenetic Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xenetic Biosciences 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 Xenetic Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xenetic Biosciences has no effect on the direction of Ginkgo Bioworks i.e., Ginkgo Bioworks and Xenetic Biosciences go up and down completely randomly.
Pair Corralation between Ginkgo Bioworks and Xenetic Biosciences
Considering the 90-day investment horizon Ginkgo Bioworks Holdings is expected to under-perform the Xenetic Biosciences. In addition to that, Ginkgo Bioworks is 2.22 times more volatile than Xenetic Biosciences. It trades about -0.01 of its total potential returns per unit of risk. Xenetic Biosciences is currently generating about 0.0 per unit of volatility. If you would invest 411.00 in Xenetic Biosciences on October 16, 2024 and sell it today you would lose (3.00) from holding Xenetic Biosciences or give up 0.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ginkgo Bioworks Holdings vs. Xenetic Biosciences
Performance |
| Timeline |
| Ginkgo Bioworks Holdings |
| Xenetic Biosciences |
Ginkgo Bioworks and Xenetic Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ginkgo Bioworks and Xenetic Biosciences
The main advantage of trading using opposite Ginkgo Bioworks and Xenetic Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ginkgo Bioworks position performs unexpectedly, Xenetic Biosciences 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 Xenetic Biosciences will offset losses from the drop in Xenetic Biosciences' long position.| Ginkgo Bioworks vs. Ocean Biomedical | Ginkgo Bioworks vs. Enveric Biosciences | Ginkgo Bioworks vs. Hepion Pharmaceuticals | Ginkgo Bioworks vs. Elevation Oncology |
| Xenetic Biosciences vs. Ginkgo Bioworks Holdings | Xenetic Biosciences vs. CureVac NV | Xenetic Biosciences vs. Iovance Biotherapeutics | Xenetic Biosciences vs. Krystal Biotech |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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