Correlation Between Codexis and Pulmatrix

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

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

Diversification Opportunities for Codexis and Pulmatrix

-0.73

Correlation Coefficient

Codexis  Pulmatrix

Pay attention - limited upside

The 3 months correlation between Codexis and Pulmatrix is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Codexis and Pulmatrix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pulmatrix and Codexis 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 Codexis are associated (or correlated) with Pulmatrix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pulmatrix has no effect on the direction of Codexis i.e., Codexis and Pulmatrix go up and down completely randomly.

Pair Corralation between Codexis and Pulmatrix

Given the investment horizon of 90 days Codexis is expected to generate 0.92 times more return on investment than Pulmatrix. However, Codexis is 1.09 times less risky than Pulmatrix. It trades about 0.1 of its potential returns per unit of risk. Pulmatrix is currently generating about -0.08 per unit of risk. If you would invest  247.00  in Codexis on May 16, 2025 and sell it today you would earn a total of  58.00  from holding Codexis or generate 23.48% return on investment over 90 days.

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

Codexis  vs.  Pulmatrix

Codexis

Risk-Adjusted Performance

Fair

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 weak basic indicators, Codexis unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pulmatrix

Risk-Adjusted Performance

Weakest

Over the last 90 days Pulmatrix has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's essential indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Codexis and Pulmatrix

The main advantage of trading using opposite Codexis and Pulmatrix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Codexis position performs unexpectedly, Pulmatrix 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 Pulmatrix will offset losses from the drop in Pulmatrix's long position.

The idea behind Codexis and Pulmatrix 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.