Correlation Between Codexis and Jaguar Animal
Can any of the company-specific risk be diversified away by investing in both Codexis and Jaguar Animal 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 Jaguar Animal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Codexis and Jaguar Animal Health, you can compare the effects of market volatilities on Codexis and Jaguar Animal 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 Jaguar Animal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Codexis and Jaguar Animal.
Diversification Opportunities for Codexis and Jaguar Animal
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Codexis and Jaguar is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Codexis and Jaguar Animal Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaguar Animal Health 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 Jaguar Animal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaguar Animal Health has no effect on the direction of Codexis i.e., Codexis and Jaguar Animal go up and down completely randomly.
Pair Corralation between Codexis and Jaguar Animal
Given the investment horizon of 90 days Codexis is expected to generate 0.56 times more return on investment than Jaguar Animal. However, Codexis is 1.8 times less risky than Jaguar Animal. It trades about 0.09 of its potential returns per unit of risk. Jaguar Animal Health is currently generating about -0.04 per unit of risk. If you would invest 175.00 in Codexis on September 1, 2024 and sell it today you would earn a total of 283.00 from holding Codexis or generate 161.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Codexis vs. Jaguar Animal Health
Performance |
| Timeline |
| Codexis |
| Jaguar Animal Health |
Codexis and Jaguar Animal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Codexis and Jaguar Animal
The main advantage of trading using opposite Codexis and Jaguar Animal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Codexis position performs unexpectedly, Jaguar Animal 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 Jaguar Animal will offset losses from the drop in Jaguar Animal's long position.| Codexis vs. Verve Therapeutics | Codexis vs. Beam Therapeutics | Codexis vs. Caribou Biosciences | Codexis vs. Sana Biotechnology |
| Jaguar Animal vs. Ibio Inc | Jaguar Animal vs. GeoVax Labs | Jaguar Animal vs. Ocugen Inc | Jaguar Animal vs. Zura Bio Limited |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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