Correlation Between Pasithea Therapeutics and Codexis
Can any of the company-specific risk be diversified away by investing in both Pasithea Therapeutics 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 Pasithea Therapeutics and Codexis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pasithea Therapeutics Corp and Codexis, you can compare the effects of market volatilities on Pasithea Therapeutics 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 Pasithea Therapeutics with a short position of Codexis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pasithea Therapeutics and Codexis.
Diversification Opportunities for Pasithea Therapeutics and Codexis
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pasithea and Codexis is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Pasithea Therapeutics Corp and Codexis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Codexis and Pasithea Therapeutics 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 Pasithea Therapeutics Corp 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 Pasithea Therapeutics i.e., Pasithea Therapeutics and Codexis go up and down completely randomly.
Pair Corralation between Pasithea Therapeutics and Codexis
Assuming the 90 days horizon Pasithea Therapeutics Corp is expected to generate 26.63 times more return on investment than Codexis. However, Pasithea Therapeutics is 26.63 times more volatile than Codexis. It trades about 0.17 of its potential returns per unit of risk. Codexis is currently generating about 0.04 per unit of risk. If you would invest 1.07 in Pasithea Therapeutics Corp on June 12, 2025 and sell it today you would earn a total of 0.28 from holding Pasithea Therapeutics Corp or generate 26.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 49.8% |
| Values | Daily Returns |
Pasithea Therapeutics Corp vs. Codexis
Performance |
| Timeline |
| Pasithea Therapeutics |
| Codexis |
Pasithea Therapeutics and Codexis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pasithea Therapeutics and Codexis
The main advantage of trading using opposite Pasithea Therapeutics and Codexis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pasithea Therapeutics 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 Pasithea Therapeutics Corp 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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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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