Correlation Between CHUBB and Codexis
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By analyzing existing cross correlation between CHUBB P 6 and Codexis, you can compare the effects of market volatilities on CHUBB 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 CHUBB with a short position of Codexis. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHUBB and Codexis.
Diversification Opportunities for CHUBB and Codexis
Very good diversification
The 3 months correlation between CHUBB and Codexis is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding CHUBB P 6 and Codexis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Codexis and CHUBB 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 CHUBB P 6 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 CHUBB i.e., CHUBB and Codexis go up and down completely randomly.
Pair Corralation between CHUBB and Codexis
Assuming the 90 days trading horizon CHUBB P 6 is expected to under-perform the Codexis. But the bond apears to be less risky and, when comparing its historical volatility, CHUBB P 6 is 7.5 times less risky than Codexis. The bond trades about -0.12 of its potential returns per unit of risk. The Codexis is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 273.00 in Codexis on September 12, 2024 and sell it today you would earn a total of 307.50 from holding Codexis or generate 112.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 78.13% |
| Values | Daily Returns |
CHUBB P 6 vs. Codexis
Performance |
| Timeline |
| CHUBB P 6 |
| Codexis |
CHUBB and Codexis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHUBB and Codexis
The main advantage of trading using opposite CHUBB and Codexis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHUBB 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.| CHUBB vs. Catalyst Pharmaceuticals | CHUBB vs. Inhibrx | CHUBB vs. Sphere Entertainment Co | CHUBB vs. BioNTech SE |
| 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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