Correlation Between Codexis and Plexus Corp
Can any of the company-specific risk be diversified away by investing in both Codexis and Plexus Corp 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 Plexus Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Codexis and Plexus Corp, you can compare the effects of market volatilities on Codexis and Plexus Corp 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 Plexus Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Codexis and Plexus Corp.
Diversification Opportunities for Codexis and Plexus Corp
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Codexis and Plexus is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Codexis and Plexus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plexus Corp 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 Plexus Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plexus Corp has no effect on the direction of Codexis i.e., Codexis and Plexus Corp go up and down completely randomly.
Pair Corralation between Codexis and Plexus Corp
Given the investment horizon of 90 days Codexis is expected to generate 1.66 times more return on investment than Plexus Corp. However, Codexis is 1.66 times more volatile than Plexus Corp. It trades about 0.4 of its potential returns per unit of risk. Plexus Corp is currently generating about 0.2 per unit of risk. If you would invest 319.00 in Codexis on August 30, 2024 and sell it today you would earn a total of 140.00 from holding Codexis or generate 43.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Codexis vs. Plexus Corp
Performance |
| Timeline |
| Codexis |
| Plexus Corp |
Codexis and Plexus Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Codexis and Plexus Corp
The main advantage of trading using opposite Codexis and Plexus Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Codexis position performs unexpectedly, Plexus Corp 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 Plexus Corp will offset losses from the drop in Plexus Corp's long position.| Codexis vs. Verve Therapeutics | Codexis vs. Beam Therapeutics | Codexis vs. Caribou Biosciences | Codexis vs. Sana Biotechnology |
| Plexus Corp vs. Celestica | Plexus Corp vs. Benchmark Electronics | Plexus Corp vs. Flex | Plexus Corp vs. Jabil Circuit |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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