Correlation Between Codexis and Samfine Creation

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Can any of the company-specific risk be diversified away by investing in both Codexis and Samfine Creation 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 Samfine Creation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Codexis and Samfine Creation Holdings, you can compare the effects of market volatilities on Codexis and Samfine Creation 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 Samfine Creation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Codexis and Samfine Creation.

Diversification Opportunities for Codexis and Samfine Creation

CodexisSamfineDiversified AwayCodexisSamfineDiversified Away100%
0.01
  Correlation Coefficient

Significant diversification

The 3 months correlation between Codexis and Samfine is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Codexis and Samfine Creation Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samfine Creation Holdings 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 Samfine Creation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samfine Creation Holdings has no effect on the direction of Codexis i.e., Codexis and Samfine Creation go up and down completely randomly.

Pair Corralation between Codexis and Samfine Creation

Given the investment horizon of 90 days Codexis is expected to under-perform the Samfine Creation. But the stock apears to be less risky and, when comparing its historical volatility, Codexis is 2.2 times less risky than Samfine Creation. The stock trades about -0.23 of its potential returns per unit of risk. The Samfine Creation Holdings is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest  96.00  in Samfine Creation Holdings on November 20, 2024 and sell it today you would lose (10.00) from holding Samfine Creation Holdings or give up 10.42% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Codexis  vs.  Samfine Creation Holdings

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 05001,0001,5002,0002,500
JavaScript chart by amCharts 3.21.15CDXS SFHG
       Timeline  
Codexis 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Over the last 90 days Codexis has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Codexis is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb44.555.56
Samfine Creation Holdings 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Samfine Creation Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical indicators remain nearly stable which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb2.55101520

Codexis and Samfine Creation Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-13.06-9.78-6.5-3.220.03.36.6610.0213.38 0.0050.0100.0150.020
JavaScript chart by amCharts 3.21.15CDXS SFHG
       Returns  

Pair Trading with Codexis and Samfine Creation

The main advantage of trading using opposite Codexis and Samfine Creation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Codexis position performs unexpectedly, Samfine Creation 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 Samfine Creation will offset losses from the drop in Samfine Creation's long position.
The idea behind Codexis and Samfine Creation Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

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