Correlation Between Codexis and ESH Acquisition
Can any of the company-specific risk be diversified away by investing in both Codexis and ESH Acquisition 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 ESH Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Codexis and ESH Acquisition Corp, you can compare the effects of market volatilities on Codexis and ESH Acquisition 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 ESH Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Codexis and ESH Acquisition.
Diversification Opportunities for Codexis and ESH Acquisition
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Codexis and ESH is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Codexis and ESH Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ESH Acquisition Corp 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 ESH Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ESH Acquisition Corp has no effect on the direction of Codexis i.e., Codexis and ESH Acquisition go up and down completely randomly.
Pair Corralation between Codexis and ESH Acquisition
Given the investment horizon of 90 days Codexis is expected to generate 2.25 times more return on investment than ESH Acquisition. However, Codexis is 2.25 times more volatile than ESH Acquisition Corp. It trades about -0.01 of its potential returns per unit of risk. ESH Acquisition Corp is currently generating about -0.26 per unit of risk. If you would invest 500.00 in Codexis on October 25, 2024 and sell it today you would lose (13.00) from holding Codexis or give up 2.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Codexis vs. ESH Acquisition Corp
Performance |
| Timeline |
| Codexis |
| ESH Acquisition Corp |
Codexis and ESH Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Codexis and ESH Acquisition
The main advantage of trading using opposite Codexis and ESH Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Codexis position performs unexpectedly, ESH Acquisition 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 ESH Acquisition will offset losses from the drop in ESH Acquisition's long position.| Codexis vs. Nuvation Bio | Codexis vs. Lyell Immunopharma | Codexis vs. Century Therapeutics | Codexis vs. Generation Bio Co |
| ESH Acquisition vs. Sphere Entertainment Co | ESH Acquisition vs. Robix Environmental Technologies | ESH Acquisition vs. Zhihu Inc ADR | ESH Acquisition vs. KVH Industries |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |