Correlation Between NYSE Composite and Codexis
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Codexis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Codexis, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Codexis. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Codexis.
Diversification Opportunities for NYSE Composite and Codexis
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NYSE and Codexis is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Codexis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Codexis and NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Codexis go up and down completely randomly.
Pair Corralation between NYSE Composite and Codexis
Assuming the 90 days trading horizon NYSE Composite is expected to generate 1.69 times less return on investment than Codexis. But when comparing it to its historical volatility, NYSE Composite is 7.48 times less risky than Codexis. It trades about 0.08 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 593.00 in Codexis on August 24, 2024 and sell it today you would lose (132.00) from holding Codexis or give up 22.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Codexis
Performance |
| Timeline |
NYSE Composite and Codexis Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Codexis
Pair trading matchups for Codexis
Pair Trading with NYSE Composite and Codexis
The main advantage of trading using opposite NYSE Composite and Codexis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Awilco Drilling PLC | NYSE Composite vs. AKITA Drilling | NYSE Composite vs. SunOpta | NYSE Composite vs. Delek Drilling |
| 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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