Correlation Between Codexis and GCP Applied
Can any of the company-specific risk be diversified away by investing in both Codexis and GCP Applied 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 GCP Applied into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Codexis and GCP Applied Technologies, you can compare the effects of market volatilities on Codexis and GCP Applied 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 GCP Applied. Check out your portfolio center. Please also check ongoing floating volatility patterns of Codexis and GCP Applied.
Diversification Opportunities for Codexis and GCP Applied
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Codexis and GCP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Codexis and GCP Applied Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GCP Applied Technologies 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 GCP Applied. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GCP Applied Technologies has no effect on the direction of Codexis i.e., Codexis and GCP Applied go up and down completely randomly.
Pair Corralation between Codexis and GCP Applied
If you would invest 401.00 in Codexis on November 6, 2024 and sell it today you would earn a total of 18.00 from holding Codexis or generate 4.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Codexis vs. GCP Applied Technologies
Performance |
| Timeline |
| Codexis |
| GCP Applied Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Codexis and GCP Applied Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Codexis and GCP Applied
The main advantage of trading using opposite Codexis and GCP Applied positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Codexis position performs unexpectedly, GCP Applied 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 GCP Applied will offset losses from the drop in GCP Applied's long position.| Codexis vs. Nuvation Bio | Codexis vs. Lyell Immunopharma | Codexis vs. Century Therapeutics | Codexis vs. Generation Bio Co |
| GCP Applied vs. X FAB Silicon Foundries | GCP Applied vs. Hunter Creek Mining | GCP Applied vs. RTG Mining | GCP Applied vs. Kuya Silver |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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