Correlation Between Ginkgo Bioworks and Invivyd

Can any of the company-specific risk be diversified away by investing in both Ginkgo Bioworks and Invivyd 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 Invivyd 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 Invivyd, you can compare the effects of market volatilities on Ginkgo Bioworks and Invivyd 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 Invivyd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ginkgo Bioworks and Invivyd.

Diversification Opportunities for Ginkgo Bioworks and Invivyd

-0.55

Correlation Coefficient

Ginkgo Bioworks  Invivyd

Excellent diversification

The 3 months correlation between Ginkgo and Invivyd is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Ginkgo Bioworks Holdings and Invivyd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invivyd 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 Invivyd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invivyd has no effect on the direction of Ginkgo Bioworks i.e., Ginkgo Bioworks and Invivyd go up and down completely randomly.

Pair Corralation between Ginkgo Bioworks and Invivyd

Considering the 90-day investment horizon Ginkgo Bioworks Holdings is expected to generate 0.98 times more return on investment than Invivyd. However, Ginkgo Bioworks Holdings is 1.02 times less risky than Invivyd. It trades about 0.15 of its potential returns per unit of risk. Invivyd is currently generating about -0.16 per unit of risk. If you would invest  816.00  in Ginkgo Bioworks Holdings on October 25, 2024 and sell it today you would earn a total of  500.00  from holding Ginkgo Bioworks Holdings or generate 61.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Ginkgo Bioworks Holdings  vs.  Invivyd

Ginkgo Bioworks Holdings

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ginkgo Bioworks Holdings are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Ginkgo Bioworks sustained solid returns over the last few months and may actually be approaching a breakup point.

Invivyd

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Invivyd has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Ginkgo Bioworks and Invivyd

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

The idea behind Ginkgo Bioworks Holdings and Invivyd 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.