Correlation Between NYSE Composite and Ginkgo Bioworks
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Ginkgo Bioworks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Ginkgo Bioworks Holdings, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Ginkgo Bioworks. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Ginkgo Bioworks.
Diversification Opportunities for NYSE Composite and Ginkgo Bioworks
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NYSE and Ginkgo is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite 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 NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Ginkgo Bioworks go up and down completely randomly.
Pair Corralation between NYSE Composite and Ginkgo Bioworks
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.12 times more return on investment than Ginkgo Bioworks. However, NYSE Composite is 8.03 times less risky than Ginkgo Bioworks. It trades about 0.08 of its potential returns per unit of risk. Ginkgo Bioworks Holdings is currently generating about -0.05 per unit of risk. If you would invest 1,532,846 in NYSE Composite on August 27, 2024 and sell it today you would earn a total of 479,499 from holding NYSE Composite or generate 31.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Ginkgo Bioworks Holdings
Performance |
| Timeline |
NYSE Composite and Ginkgo Bioworks Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Ginkgo Bioworks Holdings
Pair trading matchups for Ginkgo Bioworks
Pair Trading with NYSE Composite and Ginkgo Bioworks
The main advantage of trading using opposite NYSE Composite and Ginkgo Bioworks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Grocery Outlet Holding | NYSE Composite vs. Tencent Music Entertainment | NYSE Composite vs. SunLink Health Systems | NYSE Composite vs. Getty Realty |
| Ginkgo Bioworks vs. Eliem Therapeutics | Ginkgo Bioworks vs. HCW Biologics | Ginkgo Bioworks vs. Scpharmaceuticals | Ginkgo Bioworks vs. Milestone 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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