Correlation Between Codexis and Flex
Can any of the company-specific risk be diversified away by investing in both Codexis and Flex 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 Flex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Codexis and Flex, you can compare the effects of market volatilities on Codexis and Flex 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 Flex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Codexis and Flex.
Diversification Opportunities for Codexis and Flex
Very good diversification
The 3 months correlation between Codexis and Flex is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Codexis and Flex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flex 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 Flex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flex has no effect on the direction of Codexis i.e., Codexis and Flex go up and down completely randomly.
Pair Corralation between Codexis and Flex
Given the investment horizon of 90 days Codexis is expected to under-perform the Flex. In addition to that, Codexis is 1.22 times more volatile than Flex. It trades about -0.27 of its total potential returns per unit of risk. Flex is currently generating about 0.0 per unit of volatility. If you would invest 3,885 in Flex on November 28, 2024 and sell it today you would lose (27.00) from holding Flex or give up 0.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Codexis vs. Flex
Performance |
| Timeline |
| Codexis |
| Flex |
Codexis and Flex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Codexis and Flex
The main advantage of trading using opposite Codexis and Flex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Codexis position performs unexpectedly, Flex 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 Flex will offset losses from the drop in Flex's long position.| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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