Correlation Between Codexis and Gap,
Can any of the company-specific risk be diversified away by investing in both Codexis and Gap, 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 Gap, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Codexis and The Gap,, you can compare the effects of market volatilities on Codexis and Gap, 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 Gap,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Codexis and Gap,.
Diversification Opportunities for Codexis and Gap,
Poor diversification
The 3 months correlation between Codexis and Gap, is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Codexis and The Gap, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gap, 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 Gap,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gap, has no effect on the direction of Codexis i.e., Codexis and Gap, go up and down completely randomly.
Pair Corralation between Codexis and Gap,
Given the investment horizon of 90 days Codexis is expected to generate 1.49 times more return on investment than Gap,. However, Codexis is 1.49 times more volatile than The Gap,. It trades about 0.07 of its potential returns per unit of risk. The Gap, is currently generating about -0.03 per unit of risk. If you would invest 348.00 in Codexis on September 1, 2024 and sell it today you would earn a total of 110.00 from holding Codexis or generate 31.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Codexis vs. The Gap,
Performance |
| Timeline |
| Codexis |
| Gap, |
Codexis and Gap, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Codexis and Gap,
The main advantage of trading using opposite Codexis and Gap, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Codexis position performs unexpectedly, Gap, 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 Gap, will offset losses from the drop in Gap,'s long position.| Codexis vs. Verve Therapeutics | Codexis vs. Beam Therapeutics | Codexis vs. Caribou Biosciences | Codexis vs. Sana Biotechnology |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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