Correlation Between Codexis and Cheer Holding
Can any of the company-specific risk be diversified away by investing in both Codexis and Cheer Holding 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 Codexis and Cheer Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Codexis and Cheer Holding, you can compare the effects of market volatilities on Codexis and Cheer Holding 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 Codexis with a short position of Cheer Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Codexis and Cheer Holding.
Diversification Opportunities for Codexis and Cheer Holding
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Codexis and Cheer is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Codexis and Cheer Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cheer Holding and Codexis 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 Codexis are associated (or correlated) with Cheer Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cheer Holding has no effect on the direction of Codexis i.e., Codexis and Cheer Holding go up and down completely randomly.
Pair Corralation between Codexis and Cheer Holding
Given the investment horizon of 90 days Codexis is expected to under-perform the Cheer Holding. In addition to that, Codexis is 1.68 times more volatile than Cheer Holding. It trades about -0.33 of its total potential returns per unit of risk. Cheer Holding is currently generating about 0.04 per unit of volatility. If you would invest 256.00 in Cheer Holding on November 4, 2024 and sell it today you would earn a total of 3.00 from holding Cheer Holding or generate 1.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Codexis vs. Cheer Holding
Performance |
| Timeline |
| Codexis |
| Cheer Holding |
Codexis and Cheer Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Codexis and Cheer Holding
The main advantage of trading using opposite Codexis and Cheer Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Codexis position performs unexpectedly, Cheer Holding 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 Cheer Holding will offset losses from the drop in Cheer Holding's long position.| Codexis vs. Nuvation Bio | Codexis vs. Lyell Immunopharma | Codexis vs. Century Therapeutics | Codexis vs. Generation Bio Co |
| Cheer Holding vs. Sealed Air | Cheer Holding vs. Empresa Distribuidora y | Cheer Holding vs. Codexis | Cheer Holding vs. Eastman Chemical |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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