Correlation Between SOUTHERN and Codexis
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By analyzing existing cross correlation between SOUTHERN CALIF EDISON and Codexis, you can compare the effects of market volatilities on SOUTHERN 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 SOUTHERN with a short position of Codexis. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOUTHERN and Codexis.
Diversification Opportunities for SOUTHERN and Codexis
Very good diversification
The 3 months correlation between SOUTHERN and Codexis is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding SOUTHERN CALIF EDISON and Codexis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Codexis and SOUTHERN 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 SOUTHERN CALIF EDISON 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 SOUTHERN i.e., SOUTHERN and Codexis go up and down completely randomly.
Pair Corralation between SOUTHERN and Codexis
Assuming the 90 days trading horizon SOUTHERN is expected to generate 9.11 times less return on investment than Codexis. But when comparing it to its historical volatility, SOUTHERN CALIF EDISON is 5.44 times less risky than Codexis. It trades about 0.22 of its potential returns per unit of risk. Codexis is currently generating about 0.36 of returns per unit of risk over similar time horizon. 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 | 61.9% |
| Values | Daily Returns |
SOUTHERN CALIF EDISON vs. Codexis
Performance |
| Timeline |
| SOUTHERN CALIF EDISON |
| Codexis |
SOUTHERN and Codexis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOUTHERN and Codexis
The main advantage of trading using opposite SOUTHERN and Codexis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOUTHERN 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.| SOUTHERN vs. Codexis | SOUTHERN vs. Stepan Company | SOUTHERN vs. BCE Inc | SOUTHERN vs. Mid Atlantic Home Health |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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