Correlation Between Novavax and Ginkgo Bioworks
Can any of the company-specific risk be diversified away by investing in both Novavax 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 Novavax and Ginkgo Bioworks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Novavax and Ginkgo Bioworks Holdings, you can compare the effects of market volatilities on Novavax 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 Novavax with a short position of Ginkgo Bioworks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Novavax and Ginkgo Bioworks.
Diversification Opportunities for Novavax and Ginkgo Bioworks
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Novavax and Ginkgo is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Novavax 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 Novavax 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 Novavax 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 Novavax i.e., Novavax and Ginkgo Bioworks go up and down completely randomly.
Pair Corralation between Novavax and Ginkgo Bioworks
Given the investment horizon of 90 days Novavax is expected to generate 0.7 times more return on investment than Ginkgo Bioworks. However, Novavax is 1.42 times less risky than Ginkgo Bioworks. It trades about -0.25 of its potential returns per unit of risk. Ginkgo Bioworks Holdings is currently generating about -0.29 per unit of risk. If you would invest 1,012 in Novavax on August 23, 2024 and sell it today you would lose (206.00) from holding Novavax or give up 20.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Novavax vs. Ginkgo Bioworks Holdings
Performance |
| Timeline |
| Novavax |
| Ginkgo Bioworks Holdings |
Novavax and Ginkgo Bioworks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Novavax and Ginkgo Bioworks
The main advantage of trading using opposite Novavax and Ginkgo Bioworks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Novavax 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.| Novavax vs. Virax Biolabs Group | Novavax vs. Kiora Pharmaceuticals | Novavax vs. ZyVersa Therapeutics | Novavax vs. Sonnet Biotherapeutics Holdings |
| Ginkgo Bioworks vs. Virax Biolabs Group | Ginkgo Bioworks vs. Kiora Pharmaceuticals | Ginkgo Bioworks vs. ZyVersa Therapeutics | Ginkgo Bioworks vs. Sonnet Biotherapeutics Holdings |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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