Correlation Between Codexis and Pyxis Oncology

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

Diversification Opportunities for Codexis and Pyxis Oncology

-0.4
  Correlation Coefficient

Very good diversification

The 3 months correlation between Codexis and Pyxis is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Codexis and Pyxis Oncology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pyxis Oncology 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 Pyxis Oncology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pyxis Oncology has no effect on the direction of Codexis i.e., Codexis and Pyxis Oncology go up and down completely randomly.

Pair Corralation between Codexis and Pyxis Oncology

Given the investment horizon of 90 days Codexis is expected to under-perform the Pyxis Oncology. But the stock apears to be less risky and, when comparing its historical volatility, Codexis is 1.99 times less risky than Pyxis Oncology. The stock trades about -0.04 of its potential returns per unit of risk. The Pyxis Oncology is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest  123.00  in Pyxis Oncology on July 28, 2025 and sell it today you would earn a total of  223.00  from holding Pyxis Oncology or generate 181.3% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Codexis  vs.  Pyxis Oncology

 Performance 
       Timeline  
Codexis 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Codexis has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.
Pyxis Oncology 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Pyxis Oncology are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Pyxis Oncology unveiled solid returns over the last few months and may actually be approaching a breakup point.

Codexis and Pyxis Oncology Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Codexis and Pyxis Oncology

The main advantage of trading using opposite Codexis and Pyxis Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Codexis position performs unexpectedly, Pyxis Oncology 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 Pyxis Oncology will offset losses from the drop in Pyxis Oncology's long position.
The idea behind Codexis and Pyxis Oncology 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.

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