Correlation Between Codexis and Pacific Biosciences
Can any of the company-specific risk be diversified away by investing in both Codexis and Pacific Biosciences 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 Pacific Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Codexis and Pacific Biosciences of, you can compare the effects of market volatilities on Codexis and Pacific Biosciences 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 Pacific Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Codexis and Pacific Biosciences.
Diversification Opportunities for Codexis and Pacific Biosciences
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Codexis and Pacific is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Codexis and Pacific Biosciences of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacific Biosciences 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 Pacific Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pacific Biosciences has no effect on the direction of Codexis i.e., Codexis and Pacific Biosciences go up and down completely randomly.
Pair Corralation between Codexis and Pacific Biosciences
Given the investment horizon of 90 days Codexis is expected to generate 0.91 times more return on investment than Pacific Biosciences. However, Codexis is 1.09 times less risky than Pacific Biosciences. It trades about 0.01 of its potential returns per unit of risk. Pacific Biosciences of is currently generating about -0.03 per unit of risk. If you would invest 417.00 in Codexis on January 12, 2025 and sell it today you would lose (182.00) from holding Codexis or give up 43.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Codexis vs. Pacific Biosciences of
Performance |
| Timeline |
| Codexis |
| Pacific Biosciences |
Codexis and Pacific Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Codexis and Pacific Biosciences
The main advantage of trading using opposite Codexis and Pacific Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Codexis position performs unexpectedly, Pacific Biosciences 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 Pacific Biosciences will offset losses from the drop in Pacific Biosciences' long position.| Codexis vs. Nuvation Bio | Codexis vs. Lyell Immunopharma | Codexis vs. Century Therapeutics | Codexis vs. Generation Bio Co |
| Pacific Biosciences vs. Twist Bioscience Corp | Pacific Biosciences vs. Intellia Therapeutics | Pacific Biosciences vs. Crispr Therapeutics AG | Pacific Biosciences vs. Editas Medicine |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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