Correlation Between Gryphon Digital and Codexis

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

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

Diversification Opportunities for Gryphon Digital and Codexis

-0.37

Correlation Coefficient

Gryphon Digital  Codexis

Very good diversification

The 3 months correlation between Gryphon and Codexis is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Gryphon Digital Mining and Codexis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Codexis and Gryphon Digital 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 Gryphon Digital Mining 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 Gryphon Digital i.e., Gryphon Digital and Codexis go up and down completely randomly.

Pair Corralation between Gryphon Digital and Codexis

Given the investment horizon of 90 days Gryphon Digital Mining is expected to under-perform the Codexis. In addition to that, Gryphon Digital is 1.91 times more volatile than Codexis. It trades about -0.22 of its total potential returns per unit of risk. Codexis is currently generating about -0.18 per unit of volatility. If you would invest  567.00  in Codexis on October 11, 2024 and sell it today you would lose (91.00) from holding Codexis or give up 16.05% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Gryphon Digital Mining  vs.  Codexis

Gryphon Digital Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gryphon Digital Mining has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest uncertain performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Codexis

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Codexis are ranked lower than 13 (%) 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.

Pair Trading with Gryphon Digital and Codexis

The main advantage of trading using opposite Gryphon Digital and Codexis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gryphon Digital 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.

The idea behind Gryphon Digital Mining and Codexis 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.