Correlation Between Codexis and DigiAsia Corp
Can any of the company-specific risk be diversified away by investing in both Codexis and DigiAsia Corp 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 DigiAsia Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Codexis and DigiAsia Corp, you can compare the effects of market volatilities on Codexis and DigiAsia Corp 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 DigiAsia Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Codexis and DigiAsia Corp.
Diversification Opportunities for Codexis and DigiAsia Corp
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Codexis and DigiAsia is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Codexis and DigiAsia Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DigiAsia 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 DigiAsia Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DigiAsia Corp has no effect on the direction of Codexis i.e., Codexis and DigiAsia Corp go up and down completely randomly.
Pair Corralation between Codexis and DigiAsia Corp
Given the investment horizon of 90 days Codexis is expected to generate 0.43 times more return on investment than DigiAsia Corp. However, Codexis is 2.32 times less risky than DigiAsia Corp. It trades about 0.37 of its potential returns per unit of risk. DigiAsia Corp is currently generating about -0.32 per unit of risk. If you would invest 306.00 in Codexis on August 24, 2024 and sell it today you would earn a total of 128.00 from holding Codexis or generate 41.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Codexis vs. DigiAsia Corp
Performance |
| Timeline |
| Codexis |
| DigiAsia Corp |
Codexis and DigiAsia Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Codexis and DigiAsia Corp
The main advantage of trading using opposite Codexis and DigiAsia Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Codexis position performs unexpectedly, DigiAsia Corp 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 DigiAsia Corp will offset losses from the drop in DigiAsia Corp's long position.| Codexis vs. Nuvation Bio | Codexis vs. Lyell Immunopharma | Codexis vs. Century Therapeutics | Codexis vs. Generation Bio Co |
| DigiAsia Corp vs. Codexis | DigiAsia Corp vs. Definitive Healthcare Corp | DigiAsia Corp vs. CDW Corp | DigiAsia Corp vs. ServiceNow |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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