Correlation Between X-FAB Silicon and Codexis
Can any of the company-specific risk be diversified away by investing in both X-FAB Silicon 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 X-FAB Silicon and Codexis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between X FAB Silicon Foundries and Codexis, you can compare the effects of market volatilities on X-FAB Silicon 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 X-FAB Silicon with a short position of Codexis. Check out your portfolio center. Please also check ongoing floating volatility patterns of X-FAB Silicon and Codexis.
Diversification Opportunities for X-FAB Silicon and Codexis
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between X-FAB and Codexis is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding X FAB Silicon Foundries and Codexis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Codexis and X-FAB Silicon 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 X FAB Silicon Foundries 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 X-FAB Silicon i.e., X-FAB Silicon and Codexis go up and down completely randomly.
Pair Corralation between X-FAB Silicon and Codexis
Assuming the 90 days horizon X FAB Silicon Foundries is expected to generate 0.73 times more return on investment than Codexis. However, X FAB Silicon Foundries is 1.37 times less risky than Codexis. It trades about 0.16 of its potential returns per unit of risk. Codexis is currently generating about 0.08 per unit of risk. If you would invest 449.00 in X FAB Silicon Foundries on October 26, 2024 and sell it today you would earn a total of 89.00 from holding X FAB Silicon Foundries or generate 19.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.5% |
| Values | Daily Returns |
X FAB Silicon Foundries vs. Codexis
Performance |
| Timeline |
| X FAB Silicon |
| Codexis |
X-FAB Silicon and Codexis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X-FAB Silicon and Codexis
The main advantage of trading using opposite X-FAB Silicon and Codexis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X-FAB Silicon 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.| X-FAB Silicon vs. NVIDIA | X-FAB Silicon vs. Intel | X-FAB Silicon vs. Taiwan Semiconductor Manufacturing | X-FAB Silicon vs. Marvell Technology Group |
| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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