Correlation Between Luxfer Holdings and Codexis
Can any of the company-specific risk be diversified away by investing in both Luxfer Holdings 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 Luxfer Holdings and Codexis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Luxfer Holdings PLC and Codexis, you can compare the effects of market volatilities on Luxfer Holdings 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 Luxfer Holdings with a short position of Codexis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luxfer Holdings and Codexis.
Diversification Opportunities for Luxfer Holdings and Codexis
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Luxfer and Codexis is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Luxfer Holdings PLC and Codexis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Codexis and Luxfer Holdings 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 Luxfer Holdings PLC 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 Luxfer Holdings i.e., Luxfer Holdings and Codexis go up and down completely randomly.
Pair Corralation between Luxfer Holdings and Codexis
Given the investment horizon of 90 days Luxfer Holdings is expected to generate 4.26 times less return on investment than Codexis. But when comparing it to its historical volatility, Luxfer Holdings PLC is 2.13 times less risky than Codexis. It trades about 0.01 of its potential returns per unit of risk. Codexis is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 575.00 in Codexis on November 5, 2024 and sell it today you would lose (156.00) from holding Codexis or give up 27.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Luxfer Holdings PLC vs. Codexis
Performance |
| Timeline |
| Luxfer Holdings PLC |
| Codexis |
Luxfer Holdings and Codexis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luxfer Holdings and Codexis
The main advantage of trading using opposite Luxfer Holdings and Codexis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luxfer Holdings 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.| Luxfer Holdings vs. Graham | Luxfer Holdings vs. Enerpac Tool Group | Luxfer Holdings vs. Kadant Inc | Luxfer Holdings vs. Omega Flex |
| 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |