Correlation Between Prime Medicine, and Ginkgo Bioworks
Can any of the company-specific risk be diversified away by investing in both Prime Medicine, 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 Prime Medicine, and Ginkgo Bioworks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prime Medicine, Common and Ginkgo Bioworks Holdings, you can compare the effects of market volatilities on Prime Medicine, 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 Prime Medicine, with a short position of Ginkgo Bioworks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prime Medicine, and Ginkgo Bioworks.
Diversification Opportunities for Prime Medicine, and Ginkgo Bioworks
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Prime and Ginkgo is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Prime Medicine, Common 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 Prime Medicine, 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 Prime Medicine, Common 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 Prime Medicine, i.e., Prime Medicine, and Ginkgo Bioworks go up and down completely randomly.
Pair Corralation between Prime Medicine, and Ginkgo Bioworks
Given the investment horizon of 90 days Prime Medicine, Common is expected to generate 0.8 times more return on investment than Ginkgo Bioworks. However, Prime Medicine, Common is 1.26 times less risky than Ginkgo Bioworks. It trades about -0.09 of its potential returns per unit of risk. Ginkgo Bioworks Holdings is currently generating about -0.12 per unit of risk. If you would invest 650.00 in Prime Medicine, Common on August 24, 2024 and sell it today you would lose (353.00) from holding Prime Medicine, Common or give up 54.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prime Medicine, Common vs. Ginkgo Bioworks Holdings
Performance |
| Timeline |
| Prime Medicine, Common |
| Ginkgo Bioworks Holdings |
Prime Medicine, and Ginkgo Bioworks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prime Medicine, and Ginkgo Bioworks
The main advantage of trading using opposite Prime Medicine, and Ginkgo Bioworks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prime Medicine, 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.| Prime Medicine, vs. Terns Pharmaceuticals | Prime Medicine, vs. Acumen Pharmaceuticals | Prime Medicine, vs. Inozyme Pharma | Prime Medicine, vs. X4 Pharmaceuticals |
| Ginkgo Bioworks vs. ZyVersa Therapeutics | Ginkgo Bioworks vs. Sonnet Biotherapeutics Holdings | Ginkgo Bioworks vs. Zura Bio Limited | Ginkgo Bioworks vs. Phio Pharmaceuticals 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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