Correlation Between C4 Therapeutics and Codexis

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Can any of the company-specific risk be diversified away by investing in both C4 Therapeutics 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 C4 Therapeutics and Codexis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between C4 Therapeutics and Codexis, you can compare the effects of market volatilities on C4 Therapeutics 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 C4 Therapeutics with a short position of Codexis. Check out your portfolio center. Please also check ongoing floating volatility patterns of C4 Therapeutics and Codexis.

Diversification Opportunities for C4 Therapeutics and Codexis

0.69
  Correlation Coefficient

Poor diversification

The 3 months correlation between CCCC and Codexis is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding C4 Therapeutics and Codexis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Codexis and C4 Therapeutics 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 C4 Therapeutics 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 C4 Therapeutics i.e., C4 Therapeutics and Codexis go up and down completely randomly.

Pair Corralation between C4 Therapeutics and Codexis

Given the investment horizon of 90 days C4 Therapeutics is expected to generate 1.43 times more return on investment than Codexis. However, C4 Therapeutics is 1.43 times more volatile than Codexis. It trades about 0.12 of its potential returns per unit of risk. Codexis is currently generating about 0.1 per unit of risk. If you would invest  161.00  in C4 Therapeutics on April 23, 2025 and sell it today you would earn a total of  66.00  from holding C4 Therapeutics or generate 40.99% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

C4 Therapeutics  vs.  Codexis

 Performance 
       Timeline  
C4 Therapeutics 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in C4 Therapeutics are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental indicators, C4 Therapeutics exhibited solid returns over the last few months and may actually be approaching a breakup point.
Codexis 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Codexis are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Codexis unveiled solid returns over the last few months and may actually be approaching a breakup point.

C4 Therapeutics and Codexis Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with C4 Therapeutics and Codexis

The main advantage of trading using opposite C4 Therapeutics and Codexis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if C4 Therapeutics 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 C4 Therapeutics 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.
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

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