Correlation Between Harbor Health and Ginkgo Bioworks
Can any of the company-specific risk be diversified away by investing in both Harbor Health and Ginkgo Bioworks 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 Harbor Health and Ginkgo Bioworks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harbor Health Care and Ginkgo Bioworks Holdings, you can compare the effects of market volatilities on Harbor Health and Ginkgo Bioworks 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 Harbor Health with a short position of Ginkgo Bioworks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbor Health and Ginkgo Bioworks.
Diversification Opportunities for Harbor Health and Ginkgo Bioworks
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Harbor and Ginkgo is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Harbor Health Care and Ginkgo Bioworks Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ginkgo Bioworks Holdings and Harbor Health 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 Harbor Health Care are associated (or correlated) with Ginkgo Bioworks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ginkgo Bioworks Holdings has no effect on the direction of Harbor Health i.e., Harbor Health and Ginkgo Bioworks go up and down completely randomly.
Pair Corralation between Harbor Health and Ginkgo Bioworks
Given the investment horizon of 90 days Harbor Health Care is expected to generate 0.15 times more return on investment than Ginkgo Bioworks. However, Harbor Health Care is 6.45 times less risky than Ginkgo Bioworks. It trades about 0.06 of its potential returns per unit of risk. Ginkgo Bioworks Holdings is currently generating about -0.03 per unit of risk. If you would invest 1,959 in Harbor Health Care on December 4, 2024 and sell it today you would earn a total of 654.68 from holding Harbor Health Care or generate 33.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbor Health Care vs. Ginkgo Bioworks Holdings
Performance |
| Timeline |
| Harbor Health Care |
| Ginkgo Bioworks Holdings |
Harbor Health and Ginkgo Bioworks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbor Health and Ginkgo Bioworks
The main advantage of trading using opposite Harbor Health and Ginkgo Bioworks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbor Health position performs unexpectedly, Ginkgo Bioworks 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 Ginkgo Bioworks will offset losses from the drop in Ginkgo Bioworks' long position.| Harbor Health vs. Horizon Kinetics Medical | Harbor Health vs. Ginkgo Bioworks Holdings | Harbor Health vs. Myriad Genetics |
| Ginkgo Bioworks vs. Ocean Biomedical | Ginkgo Bioworks vs. Enveric Biosciences | Ginkgo Bioworks vs. Hepion Pharmaceuticals | Ginkgo Bioworks vs. Elevation Oncology |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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