Correlation Between Hawkins and Codexis
Can any of the company-specific risk be diversified away by investing in both Hawkins 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 Hawkins and Codexis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hawkins and Codexis, you can compare the effects of market volatilities on Hawkins 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 Hawkins with a short position of Codexis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hawkins and Codexis.
Diversification Opportunities for Hawkins and Codexis
Poor diversification
The 3 months correlation between Hawkins and Codexis is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Hawkins and Codexis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Codexis and Hawkins 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 Hawkins 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 Hawkins i.e., Hawkins and Codexis go up and down completely randomly.
Pair Corralation between Hawkins and Codexis
Given the investment horizon of 90 days Hawkins is expected to generate 0.42 times more return on investment than Codexis. However, Hawkins is 2.38 times less risky than Codexis. It trades about 0.13 of its potential returns per unit of risk. Codexis is currently generating about 0.04 per unit of risk. If you would invest 4,235 in Hawkins on September 11, 2024 and sell it today you would earn a total of 9,187 from holding Hawkins or generate 216.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Hawkins vs. Codexis
Performance |
Timeline |
Hawkins |
Codexis |
Hawkins and Codexis Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hawkins and Codexis
The main advantage of trading using opposite Hawkins and Codexis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hawkins 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.Hawkins vs. H B Fuller | Hawkins vs. Minerals Technologies | Hawkins vs. Quaker Chemical | Hawkins vs. Oil Dri |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |