Correlation Between Codexis and 360 Finance
Can any of the company-specific risk be diversified away by investing in both Codexis and 360 Finance 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 360 Finance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Codexis and 360 Finance, you can compare the effects of market volatilities on Codexis and 360 Finance 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 360 Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Codexis and 360 Finance.
Diversification Opportunities for Codexis and 360 Finance
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Codexis and 360 is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Codexis and 360 Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 360 Finance 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 360 Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 360 Finance has no effect on the direction of Codexis i.e., Codexis and 360 Finance go up and down completely randomly.
Pair Corralation between Codexis and 360 Finance
Given the investment horizon of 90 days Codexis is expected to generate 1.29 times more return on investment than 360 Finance. However, Codexis is 1.29 times more volatile than 360 Finance. It trades about 0.36 of its potential returns per unit of risk. 360 Finance is currently generating about 0.28 per unit of risk. If you would invest 402.00 in Codexis on September 13, 2024 and sell it today you would earn a total of 161.00 from holding Codexis or generate 40.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Codexis vs. 360 Finance
Performance |
| Timeline |
| Codexis |
| 360 Finance |
Codexis and 360 Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Codexis and 360 Finance
The main advantage of trading using opposite Codexis and 360 Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Codexis position performs unexpectedly, 360 Finance 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 360 Finance will offset losses from the drop in 360 Finance's long position.| Codexis vs. Molecular Partners AG | Codexis vs. MediciNova | Codexis vs. Anebulo Pharmaceuticals | Codexis vs. Shattuck Labs |
| 360 Finance vs. NETGEAR | 360 Finance vs. Analog Devices | 360 Finance vs. Jutal Offshore Oil | 360 Finance vs. Asure Software |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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