Correlation Between Codexis and Saia
Can any of the company-specific risk be diversified away by investing in both Codexis and Saia 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 Saia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Codexis and Saia Inc, you can compare the effects of market volatilities on Codexis and Saia 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 Saia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Codexis and Saia.
Diversification Opportunities for Codexis and Saia
Poor diversification
The 3 months correlation between Codexis and Saia is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Codexis and Saia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saia Inc 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 Saia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saia Inc has no effect on the direction of Codexis i.e., Codexis and Saia go up and down completely randomly.
Pair Corralation between Codexis and Saia
Given the investment horizon of 90 days Codexis is expected to generate 1.29 times more return on investment than Saia. However, Codexis is 1.29 times more volatile than Saia Inc. It trades about 0.14 of its potential returns per unit of risk. Saia Inc is currently generating about 0.05 per unit of risk. If you would invest 294.00 in Codexis on September 19, 2024 and sell it today you would earn a total of 267.00 from holding Codexis or generate 90.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Codexis vs. Saia Inc
Performance |
| Timeline |
| Codexis |
| Saia Inc |
Codexis and Saia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Codexis and Saia
The main advantage of trading using opposite Codexis and Saia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Codexis position performs unexpectedly, Saia 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 Saia will offset losses from the drop in Saia's long position.| Codexis vs. Molecular Partners AG | Codexis vs. MediciNova | Codexis vs. Anebulo Pharmaceuticals | Codexis vs. Shattuck Labs |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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