Correlation Between Codexis and CXApp

Can any of the company-specific risk be diversified away by investing in both Codexis and CXApp 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 Codexis and CXApp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Codexis and CXApp Inc, you can compare the effects of market volatilities on Codexis and CXApp 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 Codexis with a short position of CXApp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Codexis and CXApp.

Diversification Opportunities for Codexis and CXApp

-0.23

Correlation Coefficient

Codexis  CXApp

Very good diversification

The 3 months correlation between Codexis and CXApp is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Codexis and CXApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CXApp Inc and Codexis 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 Codexis are associated (or correlated) with CXApp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CXApp Inc has no effect on the direction of Codexis i.e., Codexis and CXApp go up and down completely randomly.

Pair Corralation between Codexis and CXApp

Given the investment horizon of 90 days Codexis is expected to generate 17.01 times less return on investment than CXApp. But when comparing it to its historical volatility, Codexis is 3.13 times less risky than CXApp. It trades about 0.02 of its potential returns per unit of risk. CXApp Inc is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  4.69  in CXApp Inc on October 4, 2024 and sell it today you would earn a total of  17.31  from holding CXApp Inc or generate 369.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.99%
Values	Daily Returns

Codexis  vs.  CXApp Inc

Codexis

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Codexis are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Codexis unveiled solid returns over the last few months and may actually be approaching a breakup point.

CXApp Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CXApp Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's forward indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Codexis and CXApp

The main advantage of trading using opposite Codexis and CXApp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Codexis position performs unexpectedly, CXApp 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 CXApp will offset losses from the drop in CXApp's long position.

The idea behind Codexis and CXApp Inc 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.

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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.