Correlation Between Hurco Companies and Codexis
Can any of the company-specific risk be diversified away by investing in both Hurco Companies 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 Hurco Companies and Codexis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hurco Companies and Codexis, you can compare the effects of market volatilities on Hurco Companies 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 Hurco Companies with a short position of Codexis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hurco Companies and Codexis.
Diversification Opportunities for Hurco Companies and Codexis
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hurco and Codexis is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Hurco Companies and Codexis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Codexis and Hurco Companies 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 Hurco Companies 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 Hurco Companies i.e., Hurco Companies and Codexis go up and down completely randomly.
Pair Corralation between Hurco Companies and Codexis
Given the investment horizon of 90 days Hurco Companies is expected to generate 3.65 times less return on investment than Codexis. But when comparing it to its historical volatility, Hurco Companies is 1.89 times less risky than Codexis. It trades about 0.23 of its potential returns per unit of risk. Codexis is currently generating about 0.44 of returns per unit of risk over similar time horizon. If you would invest 299.00 in Codexis on August 25, 2024 and sell it today you would earn a total of 162.00 from holding Codexis or generate 54.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hurco Companies vs. Codexis
Performance |
| Timeline |
| Hurco Companies |
| Codexis |
Hurco Companies and Codexis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hurco Companies and Codexis
The main advantage of trading using opposite Hurco Companies and Codexis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hurco Companies 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.| Hurco Companies vs. Enerpac Tool Group | Hurco Companies vs. Enpro Industries | Hurco Companies vs. Omega Flex | Hurco Companies vs. Gorman Rupp |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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