Correlation Between Ginkgo Bioworks and Tharimmune

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

Diversification Opportunities for Ginkgo Bioworks and Tharimmune

-0.45

Correlation Coefficient

Ginkgo Bioworks  Tharimmune

Very good diversification

The 3 months correlation between Ginkgo and Tharimmune is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Ginkgo Bioworks Holdings and Tharimmune in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tharimmune 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 Tharimmune. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tharimmune has no effect on the direction of Ginkgo Bioworks i.e., Ginkgo Bioworks and Tharimmune go up and down completely randomly.

Pair Corralation between Ginkgo Bioworks and Tharimmune

Considering the 90-day investment horizon Ginkgo Bioworks Holdings is expected to generate 0.57 times more return on investment than Tharimmune. However, Ginkgo Bioworks Holdings is 1.77 times less risky than Tharimmune. It trades about 0.18 of its potential returns per unit of risk. Tharimmune is currently generating about 0.0 per unit of risk. If you would invest  627.00  in Ginkgo Bioworks Holdings on September 12, 2024 and sell it today you would earn a total of  476.00  from holding Ginkgo Bioworks Holdings or generate 75.92% 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.  Tharimmune

Ginkgo Bioworks Holdings

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ginkgo Bioworks Holdings are ranked lower than 13 (%) 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.

Tharimmune

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tharimmune has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Tharimmune is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Ginkgo Bioworks and Tharimmune

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

The idea behind Ginkgo Bioworks Holdings and Tharimmune 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.