Correlation Between Codexis and 06051GGA1

Can any of the company-specific risk be diversified away by investing in both Codexis and 06051GGA1 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 06051GGA1 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Codexis and BANK AMER P, you can compare the effects of market volatilities on Codexis and 06051GGA1 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 06051GGA1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Codexis and 06051GGA1.

Diversification Opportunities for Codexis and 06051GGA1

0.0

Correlation Coefficient

Codexis  06051GGA1

Pay attention - limited upside

The 3 months correlation between Codexis and 06051GGA1 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Codexis and BANK AMER P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK AMER P 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 06051GGA1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK AMER P has no effect on the direction of Codexis i.e., Codexis and 06051GGA1 go up and down completely randomly.

Pair Corralation between Codexis and 06051GGA1

If you would invest  297.00  in Codexis on October 10, 2024 and sell it today you would earn a total of  202.00  from holding Codexis or generate 68.01% return on investment over 90 days.

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

Codexis  vs.  BANK AMER P

Codexis

Risk-Adjusted Performance

16 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Codexis are ranked lower than 16 (%) 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.

BANK AMER P

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BANK AMER P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 06051GGA1 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Codexis and 06051GGA1

The main advantage of trading using opposite Codexis and 06051GGA1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Codexis position performs unexpectedly, 06051GGA1 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 06051GGA1 will offset losses from the drop in 06051GGA1's long position.

The idea behind Codexis and BANK AMER P 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.