Correlation Between VectivBio Holding and Ginkgo Bioworks
Can any of the company-specific risk be diversified away by investing in both VectivBio Holding 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 VectivBio Holding and Ginkgo Bioworks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VectivBio Holding AG and Ginkgo Bioworks Holdings, you can compare the effects of market volatilities on VectivBio Holding 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 VectivBio Holding with a short position of Ginkgo Bioworks. Check out your portfolio center. Please also check ongoing floating volatility patterns of VectivBio Holding and Ginkgo Bioworks.
Diversification Opportunities for VectivBio Holding and Ginkgo Bioworks
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between VectivBio and Ginkgo is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding VectivBio Holding AG 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 VectivBio Holding 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 VectivBio Holding AG 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 VectivBio Holding i.e., VectivBio Holding and Ginkgo Bioworks go up and down completely randomly.
Pair Corralation between VectivBio Holding and Ginkgo Bioworks
Given the investment horizon of 90 days VectivBio Holding AG is expected to generate 0.76 times more return on investment than Ginkgo Bioworks. However, VectivBio Holding AG is 1.32 times less risky than Ginkgo Bioworks. It trades about 0.16 of its potential returns per unit of risk. Ginkgo Bioworks Holdings is currently generating about -0.06 per unit of risk. If you would invest 869.00 in VectivBio Holding AG on August 27, 2024 and sell it today you would earn a total of 816.00 from holding VectivBio Holding AG or generate 93.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 23.74% |
| Values | Daily Returns |
VectivBio Holding AG vs. Ginkgo Bioworks Holdings
Performance |
| Timeline |
| VectivBio Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ginkgo Bioworks Holdings |
VectivBio Holding and Ginkgo Bioworks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VectivBio Holding and Ginkgo Bioworks
The main advantage of trading using opposite VectivBio Holding and Ginkgo Bioworks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VectivBio Holding 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.| VectivBio Holding vs. Cns Pharmaceuticals | VectivBio Holding vs. ZyVersa Therapeutics | VectivBio Holding vs. Immix Biopharma | VectivBio Holding vs. Hepion Pharmaceuticals |
| 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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |