Correlation Between Abcellera Biologics and Ginkgo Bioworks

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

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

Diversification Opportunities for Abcellera Biologics and Ginkgo Bioworks

0.84

Correlation Coefficient

Abcellera Biologics  Ginkgo Bioworks

Very poor diversification

The 3 months correlation between Abcellera and Ginkgo is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Abcellera Biologics 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 Abcellera Biologics 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 Abcellera Biologics 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 Abcellera Biologics i.e., Abcellera Biologics and Ginkgo Bioworks go up and down completely randomly.

Pair Corralation between Abcellera Biologics and Ginkgo Bioworks

Given the investment horizon of 90 days Abcellera Biologics is expected to generate 0.91 times more return on investment than Ginkgo Bioworks. However, Abcellera Biologics is 1.1 times less risky than Ginkgo Bioworks. It trades about 0.21 of its potential returns per unit of risk. Ginkgo Bioworks Holdings is currently generating about 0.12 per unit of risk. If you would invest  245.00  in Abcellera Biologics on April 20, 2025 and sell it today you would earn a total of  203.00  from holding Abcellera Biologics or generate 82.86% return on investment over 90 days.

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

Abcellera Biologics  vs.  Ginkgo Bioworks Holdings

Abcellera Biologics

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Abcellera Biologics are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite quite weak fundamental indicators, Abcellera Biologics disclosed solid returns over the last few months and may actually be approaching a breakup point.

Ginkgo Bioworks Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ginkgo Bioworks Holdings are ranked lower than 9 (%) 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.

Pair Trading with Abcellera Biologics and Ginkgo Bioworks

The main advantage of trading using opposite Abcellera Biologics and Ginkgo Bioworks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abcellera Biologics 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.

The idea behind Abcellera Biologics and Ginkgo Bioworks Holdings 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.