Correlation Between Fonar and Codexis
Can any of the company-specific risk be diversified away by investing in both Fonar and Codexis 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 Fonar and Codexis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fonar and Codexis, you can compare the effects of market volatilities on Fonar and Codexis 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 Fonar with a short position of Codexis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fonar and Codexis.
Diversification Opportunities for Fonar and Codexis
Very good diversification
The 3 months correlation between Fonar and Codexis is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Fonar and Codexis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Codexis and Fonar 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 Fonar are associated (or correlated) with Codexis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Codexis has no effect on the direction of Fonar i.e., Fonar and Codexis go up and down completely randomly.
Pair Corralation between Fonar and Codexis
Given the investment horizon of 90 days Fonar is expected to generate 14.54 times less return on investment than Codexis. But when comparing it to its historical volatility, Fonar is 2.56 times less risky than Codexis. It trades about 0.0 of its potential returns per unit of risk. Codexis is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 572.00 in Codexis on August 29, 2024 and sell it today you would lose (113.00) from holding Codexis or give up 19.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fonar vs. Codexis
Performance |
| Timeline |
| Fonar |
| Codexis |
Fonar and Codexis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fonar and Codexis
The main advantage of trading using opposite Fonar and Codexis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fonar position performs unexpectedly, Codexis 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 Codexis will offset losses from the drop in Codexis' long position.| Fonar vs. Burning Rock Biotech | Fonar vs. Sera Prognostics | Fonar vs. Exagen Inc | Fonar vs. Castle Biosciences |
| 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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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