Correlation Between Codexis and UNITED
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By analyzing existing cross correlation between Codexis and UNITED TECHNOLOGIES P, you can compare the effects of market volatilities on Codexis and UNITED 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 UNITED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Codexis and UNITED.
Diversification Opportunities for Codexis and UNITED
Very good diversification
The 3 months correlation between Codexis and UNITED is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Codexis and UNITED TECHNOLOGIES P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNITED TECHNOLOGIES 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 UNITED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNITED TECHNOLOGIES has no effect on the direction of Codexis i.e., Codexis and UNITED go up and down completely randomly.
Pair Corralation between Codexis and UNITED
Given the investment horizon of 90 days Codexis is expected to generate 1.83 times more return on investment than UNITED. However, Codexis is 1.83 times more volatile than UNITED TECHNOLOGIES P. It trades about 0.42 of its potential returns per unit of risk. UNITED TECHNOLOGIES P is currently generating about -0.15 per unit of risk. If you would invest 349.00 in Codexis on September 4, 2024 and sell it today you would earn a total of 128.00 from holding Codexis or generate 36.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 66.67% |
| Values | Daily Returns |
Codexis vs. UNITED TECHNOLOGIES P
Performance |
| Timeline |
| Codexis |
| UNITED TECHNOLOGIES |
Codexis and UNITED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Codexis and UNITED
The main advantage of trading using opposite Codexis and UNITED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Codexis position performs unexpectedly, UNITED 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 UNITED will offset losses from the drop in UNITED'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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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