Correlation Between Agilent Technologies and Codexis
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and Codexis 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 Agilent Technologies and Codexis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and Codexis, you can compare the effects of market volatilities on Agilent Technologies and Codexis 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 Agilent Technologies with a short position of Codexis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and Codexis.
Diversification Opportunities for Agilent Technologies and Codexis
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Agilent and Codexis is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Codexis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Codexis and Agilent Technologies 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 Agilent Technologies are associated (or correlated) with Codexis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Codexis has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Codexis go up and down completely randomly.
Pair Corralation between Agilent Technologies and Codexis
Taking into account the 90-day investment horizon Agilent Technologies is expected to generate 10.12 times less return on investment than Codexis. But when comparing it to its historical volatility, Agilent Technologies is 3.36 times less risky than Codexis. It trades about 0.01 of its potential returns per unit of risk. Codexis is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 586.00 in Codexis on November 1, 2024 and sell it today you would lose (139.00) from holding Codexis or give up 23.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agilent Technologies vs. Codexis
Performance |
| Timeline |
| Agilent Technologies |
| Codexis |
Agilent Technologies and Codexis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and Codexis
The main advantage of trading using opposite Agilent Technologies and Codexis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, Codexis 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 Codexis will offset losses from the drop in Codexis' long position.| Agilent Technologies vs. Danaher | Agilent Technologies vs. Illumina | Agilent Technologies vs. IDEXX Laboratories | Agilent Technologies vs. Waters |
| Codexis vs. Agilent Technologies | Codexis vs. Equillium | Codexis vs. 23Andme Holding Co | Codexis vs. DiaMedica Therapeutics |
Check out your portfolio center.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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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