Correlation Between Ainsworth Game and Codexis
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game 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 Ainsworth Game and Codexis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ainsworth Game Technology and Codexis, you can compare the effects of market volatilities on Ainsworth Game 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 Ainsworth Game with a short position of Codexis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Codexis.
Diversification Opportunities for Ainsworth Game and Codexis
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ainsworth and Codexis is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Codexis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Codexis and Ainsworth Game 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 Ainsworth Game Technology 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 Ainsworth Game i.e., Ainsworth Game and Codexis go up and down completely randomly.
Pair Corralation between Ainsworth Game and Codexis
Assuming the 90 days horizon Ainsworth Game Technology is expected to under-perform the Codexis. But the pink sheet apears to be less risky and, when comparing its historical volatility, Ainsworth Game Technology is 2.17 times less risky than Codexis. The pink sheet trades about -0.06 of its potential returns per unit of risk. The Codexis is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 209.00 in Codexis on September 4, 2024 and sell it today you would earn a total of 263.00 from holding Codexis or generate 125.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Ainsworth Game Technology vs. Codexis
Performance |
| Timeline |
| Ainsworth Game Technology |
| Codexis |
Ainsworth Game and Codexis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and Codexis
The main advantage of trading using opposite Ainsworth Game and Codexis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game 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.| Ainsworth Game vs. Intema Solutions | Ainsworth Game vs. 888 Holdings | Ainsworth Game vs. Royal Wins | Ainsworth Game vs. Real Luck Group |
| Codexis vs. Nuvation Bio | Codexis vs. Lyell Immunopharma | Codexis vs. Century Therapeutics | Codexis vs. Generation Bio Co |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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