Correlation Between Codexis and Datalex Plc

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

By analyzing existing cross correlation between Codexis and Datalex plc, you can compare the effects of market volatilities on Codexis and Datalex Plc 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 Datalex Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Codexis and Datalex Plc.

Diversification Opportunities for Codexis and Datalex Plc

0.0

Correlation Coefficient

Codexis  Datalex Plc

Pay attention - limited upside

The 3 months correlation between Codexis and Datalex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Codexis and Datalex plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Datalex plc 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 Datalex Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Datalex plc has no effect on the direction of Codexis i.e., Codexis and Datalex Plc go up and down completely randomly.

Pair Corralation between Codexis and Datalex Plc

If you would invest (100.00) in Datalex plc on December 30, 2024 and sell it today you would earn a total of  100.00  from holding Datalex plc or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Codexis  vs.  Datalex plc

Codexis

Risk-Adjusted Performance

Very Weak

Over the last 90 days Codexis has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Datalex plc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Datalex plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Datalex Plc is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Codexis and Datalex Plc

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

The idea behind Codexis and Datalex plc 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.