Correlation Between Codexis and MERCK
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By analyzing existing cross correlation between Codexis and MERCK INC, you can compare the effects of market volatilities on Codexis and MERCK 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 MERCK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Codexis and MERCK.
Diversification Opportunities for Codexis and MERCK
Very good diversification
The 3 months correlation between Codexis and MERCK is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Codexis and MERCK INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MERCK 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 MERCK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MERCK INC has no effect on the direction of Codexis i.e., Codexis and MERCK go up and down completely randomly.
Pair Corralation between Codexis and MERCK
Given the investment horizon of 90 days Codexis is expected to generate 3.87 times more return on investment than MERCK. However, Codexis is 3.87 times more volatile than MERCK INC. It trades about 0.44 of its potential returns per unit of risk. MERCK INC is currently generating about -0.16 per unit of risk. If you would invest 349.00 in Codexis on September 5, 2024 and sell it today you would earn a total of 140.00 from holding Codexis or generate 40.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Codexis vs. MERCK INC
Performance |
| Timeline |
| Codexis |
| MERCK INC |
Codexis and MERCK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Codexis and MERCK
The main advantage of trading using opposite Codexis and MERCK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Codexis position performs unexpectedly, MERCK 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 MERCK will offset losses from the drop in MERCK's long position.| Codexis vs. Nuvation Bio | Codexis vs. Lyell Immunopharma | Codexis vs. Century Therapeutics | Codexis vs. Generation Bio Co |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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