Correlation Between Chesapeake Energy and Codexis
Can any of the company-specific risk be diversified away by investing in both Chesapeake Energy 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 Chesapeake Energy and Codexis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chesapeake Energy and Codexis, you can compare the effects of market volatilities on Chesapeake Energy 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 Chesapeake Energy with a short position of Codexis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chesapeake Energy and Codexis.
Diversification Opportunities for Chesapeake Energy and Codexis
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chesapeake and Codexis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Chesapeake Energy and Codexis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Codexis and Chesapeake Energy 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 Chesapeake Energy 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 Chesapeake Energy i.e., Chesapeake Energy and Codexis go up and down completely randomly.
Pair Corralation between Chesapeake Energy and Codexis
If you would invest 455.00 in Codexis on September 24, 2024 and sell it today you would earn a total of 38.00 from holding Codexis or generate 8.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 4.76% |
Values | Daily Returns |
Chesapeake Energy vs. Codexis
Performance |
Timeline |
Chesapeake Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Codexis |
Chesapeake Energy and Codexis Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chesapeake Energy and Codexis
The main advantage of trading using opposite Chesapeake Energy and Codexis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chesapeake Energy 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.Chesapeake Energy vs. Valneva SE ADR | Chesapeake Energy vs. Regeneron Pharmaceuticals | Chesapeake Energy vs. WPP PLC ADR | Chesapeake Energy vs. Integral Ad Science |
Codexis vs. Twist Bioscience Corp | Codexis vs. Natera Inc | Codexis vs. Guardant Health | Codexis vs. Castle Biosciences |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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