Correlation Between Codexis and SEI Investments
Can any of the company-specific risk be diversified away by investing in both Codexis and SEI Investments 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 SEI Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Codexis and SEI Investments, you can compare the effects of market volatilities on Codexis and SEI Investments 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 SEI Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Codexis and SEI Investments.
Diversification Opportunities for Codexis and SEI Investments
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Codexis and SEI is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Codexis and SEI Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEI Investments 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 SEI Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEI Investments has no effect on the direction of Codexis i.e., Codexis and SEI Investments go up and down completely randomly.
Pair Corralation between Codexis and SEI Investments
Given the investment horizon of 90 days Codexis is expected to generate 3.36 times more return on investment than SEI Investments. However, Codexis is 3.36 times more volatile than SEI Investments. It trades about 0.4 of its potential returns per unit of risk. SEI Investments is currently generating about 0.28 per unit of risk. If you would invest 321.00 in Codexis on August 31, 2024 and sell it today you would earn a total of 138.00 from holding Codexis or generate 42.99% 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. SEI Investments
Performance |
| Timeline |
| Codexis |
| SEI Investments |
Codexis and SEI Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Codexis and SEI Investments
The main advantage of trading using opposite Codexis and SEI Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Codexis position performs unexpectedly, SEI Investments 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 SEI Investments will offset losses from the drop in SEI Investments' long position.| Codexis vs. Nuvation Bio | Codexis vs. Lyell Immunopharma | Codexis vs. Century Therapeutics | Codexis vs. Generation Bio Co |
| SEI Investments vs. Commerce Bancshares | SEI Investments vs. RLI Corp | SEI Investments vs. Westamerica Bancorporation | SEI Investments vs. Brown Brown |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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