Correlation Between Ginkgo Bioworks and Alumis Common

Can any of the company-specific risk be diversified away by investing in both Ginkgo Bioworks and Alumis Common 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 Ginkgo Bioworks and Alumis Common into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ginkgo Bioworks Holdings and Alumis Common Stock, you can compare the effects of market volatilities on Ginkgo Bioworks and Alumis Common 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 Ginkgo Bioworks with a short position of Alumis Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ginkgo Bioworks and Alumis Common.

Diversification Opportunities for Ginkgo Bioworks and Alumis Common

0.11

Correlation Coefficient

Ginkgo Bioworks  Alumis Common

Average diversification

The 3 months correlation between Ginkgo and Alumis is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Ginkgo Bioworks Holdings and Alumis Common Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alumis Common Stock and Ginkgo Bioworks 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 Ginkgo Bioworks Holdings are associated (or correlated) with Alumis Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alumis Common Stock has no effect on the direction of Ginkgo Bioworks i.e., Ginkgo Bioworks and Alumis Common go up and down completely randomly.

Pair Corralation between Ginkgo Bioworks and Alumis Common

Considering the 90-day investment horizon Ginkgo Bioworks Holdings is expected to generate 1.5 times more return on investment than Alumis Common. However, Ginkgo Bioworks is 1.5 times more volatile than Alumis Common Stock. It trades about -0.01 of its potential returns per unit of risk. Alumis Common Stock is currently generating about -0.2 per unit of risk. If you would invest  874.00  in Ginkgo Bioworks Holdings on December 19, 2024 and sell it today you would lose (146.00) from holding Ginkgo Bioworks Holdings or give up 16.7% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Ginkgo Bioworks Holdings  vs.  Alumis Common Stock

Ginkgo Bioworks Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ginkgo Bioworks Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Ginkgo Bioworks is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Alumis Common Stock

Risk-Adjusted Performance

Very Weak

Over the last 90 days Alumis Common Stock has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's primary indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Ginkgo Bioworks and Alumis Common

The main advantage of trading using opposite Ginkgo Bioworks and Alumis Common positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ginkgo Bioworks position performs unexpectedly, Alumis Common 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 Alumis Common will offset losses from the drop in Alumis Common's long position.

The idea behind Ginkgo Bioworks Holdings and Alumis Common Stock pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.