Correlation Between Codexis and GENERAL
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By analyzing existing cross correlation between Codexis and GENERAL ELEC CAP, you can compare the effects of market volatilities on Codexis and GENERAL 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 GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Codexis and GENERAL.
Diversification Opportunities for Codexis and GENERAL
Very weak diversification
The 3 months correlation between Codexis and GENERAL is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Codexis and GENERAL ELEC CAP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL ELEC CAP 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 GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL ELEC CAP has no effect on the direction of Codexis i.e., Codexis and GENERAL go up and down completely randomly.
Pair Corralation between Codexis and GENERAL
Given the investment horizon of 90 days Codexis is expected to generate 3.69 times more return on investment than GENERAL. However, Codexis is 3.69 times more volatile than GENERAL ELEC CAP. It trades about 0.17 of its potential returns per unit of risk. GENERAL ELEC CAP is currently generating about -0.29 per unit of risk. If you would invest 315.00 in Codexis on October 11, 2024 and sell it today you would earn a total of 161.00 from holding Codexis or generate 51.11% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 24.59% |
Values | Daily Returns |
Codexis vs. GENERAL ELEC CAP
Performance |
Timeline |
Codexis |
GENERAL ELEC CAP |
Codexis and GENERAL Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Codexis and GENERAL
The main advantage of trading using opposite Codexis and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Codexis position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL's long position.Codexis vs. Nuvation Bio | Codexis vs. Lyell Immunopharma | Codexis vs. Century Therapeutics | Codexis vs. Generation Bio Co |
GENERAL vs. Goosehead Insurance | GENERAL vs. Alignment Healthcare LLC | GENERAL vs. Reservoir Media | GENERAL vs. Hewlett Packard Enterprise |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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