Correlation Between Codexis and Simon Property
Can any of the company-specific risk be diversified away by investing in both Codexis and Simon Property 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 Simon Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Codexis and Simon Property Group, you can compare the effects of market volatilities on Codexis and Simon Property 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 Simon Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Codexis and Simon Property.
Diversification Opportunities for Codexis and Simon Property
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Codexis and Simon is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Codexis and Simon Property Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simon Property Group 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 Simon Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simon Property Group has no effect on the direction of Codexis i.e., Codexis and Simon Property go up and down completely randomly.
Pair Corralation between Codexis and Simon Property
Given the investment horizon of 90 days Codexis is expected to generate 4.39 times more return on investment than Simon Property. However, Codexis is 4.39 times more volatile than Simon Property Group. It trades about 0.08 of its potential returns per unit of risk. Simon Property Group is currently generating about 0.12 per unit of risk. If you would invest 220.00 in Codexis on September 2, 2024 and sell it today you would earn a total of 238.00 from holding Codexis or generate 108.18% 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. Simon Property Group
Performance |
| Timeline |
| Codexis |
| Simon Property Group |
Codexis and Simon Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Codexis and Simon Property
The main advantage of trading using opposite Codexis and Simon Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Codexis position performs unexpectedly, Simon Property 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 Simon Property will offset losses from the drop in Simon Property's long position.| Codexis vs. Nuvation Bio | Codexis vs. Lyell Immunopharma | Codexis vs. Century Therapeutics | Codexis vs. Generation Bio Co |
| Simon Property vs. Federal Realty Investment | Simon Property vs. National Retail Properties | Simon Property vs. Kimco Realty |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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