Correlation Between Codexis and Canlan Ice
Can any of the company-specific risk be diversified away by investing in both Codexis and Canlan Ice 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 Canlan Ice into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Codexis and Canlan Ice Sports, you can compare the effects of market volatilities on Codexis and Canlan Ice 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 Canlan Ice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Codexis and Canlan Ice.
Diversification Opportunities for Codexis and Canlan Ice
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Codexis and Canlan is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Codexis and Canlan Ice Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canlan Ice Sports 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 Canlan Ice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canlan Ice Sports has no effect on the direction of Codexis i.e., Codexis and Canlan Ice go up and down completely randomly.
Pair Corralation between Codexis and Canlan Ice
Given the investment horizon of 90 days Codexis is expected to generate 52.85 times more return on investment than Canlan Ice. However, Codexis is 52.85 times more volatile than Canlan Ice Sports. It trades about 0.05 of its potential returns per unit of risk. Canlan Ice Sports is currently generating about 0.14 per unit of risk. If you would invest 270.00 in Codexis on September 4, 2024 and sell it today you would earn a total of 202.00 from holding Codexis or generate 74.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Codexis vs. Canlan Ice Sports
Performance |
| Timeline |
| Codexis |
| Canlan Ice Sports |
Codexis and Canlan Ice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Codexis and Canlan Ice
The main advantage of trading using opposite Codexis and Canlan Ice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Codexis position performs unexpectedly, Canlan Ice 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 Canlan Ice will offset losses from the drop in Canlan Ice's long position.| Codexis vs. Nuvation Bio | Codexis vs. Lyell Immunopharma | Codexis vs. Century Therapeutics | Codexis vs. Generation Bio Co |
| Canlan Ice vs. Comstock Holding Companies | Canlan Ice vs. Artisan Partners Asset | Canlan Ice vs. LithiumBank Resources Corp | Canlan Ice vs. PennantPark Investment |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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