Correlation Between Atreca and Codexis

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

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

Diversification Opportunities for Atreca and Codexis

0.61

Correlation Coefficient

Atreca  Codexis

Poor diversification

The 3 months correlation between Atreca and Codexis is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Atreca Inc and Codexis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Codexis and Atreca 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 Atreca Inc 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 Atreca i.e., Atreca and Codexis go up and down completely randomly.

Pair Corralation between Atreca and Codexis

If you would invest  7.10  in Atreca Inc on January 25, 2024 and sell it today you would earn a total of  0.00  from holding Atreca Inc or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	9.09%
Values	Daily Returns

Atreca Inc  vs.  Codexis

Atreca Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Atreca Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in May 2024. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Codexis

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Codexis are ranked lower than 3 (%) 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 Atreca and Codexis

The main advantage of trading using opposite Atreca and Codexis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atreca 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 Atreca Inc 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.