Correlation Between Shattuck Labs and Codexis
Can any of the company-specific risk be diversified away by investing in both Shattuck Labs 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 Shattuck Labs and Codexis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shattuck Labs and Codexis, you can compare the effects of market volatilities on Shattuck Labs 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 Shattuck Labs with a short position of Codexis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shattuck Labs and Codexis.
Diversification Opportunities for Shattuck Labs and Codexis
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shattuck and Codexis is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Shattuck Labs and Codexis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Codexis and Shattuck Labs 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 Shattuck Labs 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 Shattuck Labs i.e., Shattuck Labs and Codexis go up and down completely randomly.
Pair Corralation between Shattuck Labs and Codexis
Given the investment horizon of 90 days Shattuck Labs is expected to generate 15.45 times less return on investment than Codexis. In addition to that, Shattuck Labs is 1.34 times more volatile than Codexis. It trades about 0.02 of its total potential returns per unit of risk. Codexis is currently generating about 0.36 per unit of volatility. If you would invest 404.00 in Codexis on September 14, 2024 and sell it today you would earn a total of 159.00 from holding Codexis or generate 39.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shattuck Labs vs. Codexis
Performance |
| Timeline |
| Shattuck Labs |
| Codexis |
Shattuck Labs and Codexis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shattuck Labs and Codexis
The main advantage of trading using opposite Shattuck Labs and Codexis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shattuck Labs 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.| Shattuck Labs vs. Puma Biotechnology | Shattuck Labs vs. Iovance Biotherapeutics | Shattuck Labs vs. Day One Biopharmaceuticals | Shattuck Labs vs. Inozyme Pharma |
| Codexis vs. Molecular Partners AG | Codexis vs. MediciNova | Codexis vs. Anebulo Pharmaceuticals | Codexis vs. Shattuck Labs |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |