Correlation Between Flexible Solutions and Codexis
Can any of the company-specific risk be diversified away by investing in both Flexible Solutions 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 Flexible Solutions and Codexis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flexible Solutions International and Codexis, you can compare the effects of market volatilities on Flexible Solutions 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 Flexible Solutions with a short position of Codexis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flexible Solutions and Codexis.
Diversification Opportunities for Flexible Solutions and Codexis
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Flexible and Codexis is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Flexible Solutions Internation and Codexis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Codexis and Flexible Solutions 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 Flexible Solutions International 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 Flexible Solutions i.e., Flexible Solutions and Codexis go up and down completely randomly.
Pair Corralation between Flexible Solutions and Codexis
Considering the 90-day investment horizon Flexible Solutions International is expected to generate 1.25 times more return on investment than Codexis. However, Flexible Solutions is 1.25 times more volatile than Codexis. It trades about 0.22 of its potential returns per unit of risk. Codexis is currently generating about 0.1 per unit of risk. If you would invest 436.00 in Flexible Solutions International on May 28, 2025 and sell it today you would earn a total of 414.00 from holding Flexible Solutions International or generate 94.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flexible Solutions Internation vs. Codexis
Performance |
| Timeline |
| Flexible Solutions |
| Codexis |
Flexible Solutions and Codexis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flexible Solutions and Codexis
The main advantage of trading using opposite Flexible Solutions and Codexis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flexible Solutions 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.| Flexible Solutions vs. Air Products and | Flexible Solutions vs. Linde plc Ordinary | Flexible Solutions vs. LyondellBasell Industries NV | Flexible Solutions vs. Eastman Chemical |
| Codexis vs. C4 Therapeutics | Codexis vs. CareDx Inc | Codexis vs. Erasca Inc | Codexis vs. Generation Bio Co |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |