Correlation Between BZLNZ and Codexis
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By analyzing existing cross correlation between BZLNZ 2 21 FEB 25 and Codexis, you can compare the effects of market volatilities on BZLNZ 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 BZLNZ with a short position of Codexis. Check out your portfolio center. Please also check ongoing floating volatility patterns of BZLNZ and Codexis.
Diversification Opportunities for BZLNZ and Codexis
Very poor diversification
The 3 months correlation between BZLNZ and Codexis is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding BZLNZ 2 21 FEB 25 and Codexis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Codexis and BZLNZ 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 BZLNZ 2 21 FEB 25 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 BZLNZ i.e., BZLNZ and Codexis go up and down completely randomly.
Pair Corralation between BZLNZ and Codexis
Assuming the 90 days trading horizon BZLNZ is expected to generate 28.68 times less return on investment than Codexis. But when comparing it to its historical volatility, BZLNZ 2 21 FEB 25 is 11.63 times less risky than Codexis. It trades about 0.02 of its potential returns per unit of risk. Codexis is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 385.00 in Codexis on September 3, 2024 and sell it today you would earn a total of 73.00 from holding Codexis or generate 18.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 26.4% |
| Values | Daily Returns |
BZLNZ 2 21 FEB 25 vs. Codexis
Performance |
| Timeline |
| BZLNZ 2 21 |
| Codexis |
BZLNZ and Codexis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BZLNZ and Codexis
The main advantage of trading using opposite BZLNZ and Codexis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BZLNZ 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.The idea behind BZLNZ 2 21 FEB 25 and Codexis pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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