Correlation Between Codexis and Orchestra BioMed
Can any of the company-specific risk be diversified away by investing in both Codexis and Orchestra BioMed 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 Orchestra BioMed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Codexis and Orchestra BioMed Holdings, you can compare the effects of market volatilities on Codexis and Orchestra BioMed 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 Orchestra BioMed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Codexis and Orchestra BioMed.
Diversification Opportunities for Codexis and Orchestra BioMed
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Codexis and Orchestra is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Codexis and Orchestra BioMed Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orchestra BioMed Holdings 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 Orchestra BioMed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orchestra BioMed Holdings has no effect on the direction of Codexis i.e., Codexis and Orchestra BioMed go up and down completely randomly.
Pair Corralation between Codexis and Orchestra BioMed
Given the investment horizon of 90 days Codexis is expected to under-perform the Orchestra BioMed. But the stock apears to be less risky and, when comparing its historical volatility, Codexis is 1.63 times less risky than Orchestra BioMed. The stock trades about -0.07 of its potential returns per unit of risk. The Orchestra BioMed Holdings is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 329.00 in Orchestra BioMed Holdings on July 25, 2025 and sell it today you would earn a total of 27.00 from holding Orchestra BioMed Holdings or generate 8.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Codexis vs. Orchestra BioMed Holdings
Performance |
| Timeline |
| Codexis |
| Orchestra BioMed Holdings |
Codexis and Orchestra BioMed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Codexis and Orchestra BioMed
The main advantage of trading using opposite Codexis and Orchestra BioMed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Codexis position performs unexpectedly, Orchestra BioMed 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 Orchestra BioMed will offset losses from the drop in Orchestra BioMed's long position.| Codexis vs. Corbus Pharmaceuticals Holding | Codexis vs. OmniAb Inc | Codexis vs. Protara Therapeutics | Codexis vs. Sangamo Therapeutics |
| Orchestra BioMed vs. Invivyd | Orchestra BioMed vs. OmniAb Inc | Orchestra BioMed vs. Sangamo Therapeutics | Orchestra BioMed vs. Cassava Sciences |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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