Correlation Between Ginkgo Bioworks and Ocean Biomedical

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

Diversification Opportunities for Ginkgo Bioworks and Ocean Biomedical

0.12

Correlation Coefficient

Ginkgo Bioworks  Ocean Biomedical

Average diversification

The 3 months correlation between Ginkgo and Ocean is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Ginkgo Bioworks Holdings and Ocean Biomedical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ocean Biomedical 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 Ocean Biomedical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ocean Biomedical has no effect on the direction of Ginkgo Bioworks i.e., Ginkgo Bioworks and Ocean Biomedical go up and down completely randomly.

Pair Corralation between Ginkgo Bioworks and Ocean Biomedical

Considering the 90-day investment horizon Ginkgo Bioworks Holdings is expected to generate 0.6 times more return on investment than Ocean Biomedical. However, Ginkgo Bioworks Holdings is 1.68 times less risky than Ocean Biomedical. It trades about -0.05 of its potential returns per unit of risk. Ocean Biomedical is currently generating about -0.22 per unit of risk. If you would invest  944.00  in Ginkgo Bioworks Holdings on December 28, 2024 and sell it today you would lose (279.00) from holding Ginkgo Bioworks Holdings or give up 29.56% 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.  Ocean Biomedical

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 weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Ocean Biomedical

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ocean Biomedical has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Ginkgo Bioworks and Ocean Biomedical

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

The idea behind Ginkgo Bioworks Holdings and Ocean Biomedical 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.