Correlation Between Space-Communication and Codexis

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

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

Diversification Opportunities for Space-Communication and Codexis

0.0

Correlation Coefficient

Space-Communication  Codexis

Pay attention - limited upside

The 3 months correlation between Space-Communication and Codexis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Space Communication and Codexis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Codexis and Space-Communication 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 Space Communication 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 Space-Communication i.e., Space-Communication and Codexis go up and down completely randomly.

Pair Corralation between Space-Communication and Codexis

If you would invest  255.00  in Codexis on May 26, 2025 and sell it today you would earn a total of  34.00  from holding Codexis or generate 13.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.92%
Values	Daily Returns

Space Communication  vs.  Codexis

Space Communication

Risk-Adjusted Performance

Weakest

Over the last 90 days Space Communication has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, Space-Communication is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Codexis

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Codexis are ranked lower than 5 (%) 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.

Pair Trading with Space-Communication and Codexis

The main advantage of trading using opposite Space-Communication and Codexis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Space-Communication 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 Space Communication 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.