Correlation Between Autodesk and Cathay Pacific
Can any of the company-specific risk be diversified away by investing in both Autodesk and Cathay Pacific 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 Autodesk and Cathay Pacific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Autodesk and Cathay Pacific Airways, you can compare the effects of market volatilities on Autodesk and Cathay Pacific 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 Autodesk with a short position of Cathay Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autodesk and Cathay Pacific.
Diversification Opportunities for Autodesk and Cathay Pacific
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Autodesk and Cathay is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Autodesk and Cathay Pacific Airways in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cathay Pacific Airways and Autodesk 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 Autodesk are associated (or correlated) with Cathay Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cathay Pacific Airways has no effect on the direction of Autodesk i.e., Autodesk and Cathay Pacific go up and down completely randomly.
Pair Corralation between Autodesk and Cathay Pacific
Given the investment horizon of 90 days Autodesk is expected to generate 4.59 times less return on investment than Cathay Pacific. In addition to that, Autodesk is 1.51 times more volatile than Cathay Pacific Airways. It trades about 0.07 of its total potential returns per unit of risk. Cathay Pacific Airways is currently generating about 0.46 per unit of volatility. If you would invest 526.00 in Cathay Pacific Airways on September 1, 2024 and sell it today you would earn a total of 93.00 from holding Cathay Pacific Airways or generate 17.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Autodesk vs. Cathay Pacific Airways
Performance |
| Timeline |
| Autodesk |
| Cathay Pacific Airways |
Autodesk and Cathay Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autodesk and Cathay Pacific
The main advantage of trading using opposite Autodesk and Cathay Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autodesk position performs unexpectedly, Cathay Pacific 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 Cathay Pacific will offset losses from the drop in Cathay Pacific's long position.| Autodesk vs. Ke Holdings | Autodesk vs. nCino Inc | Autodesk vs. Kingsoft Cloud Holdings | Autodesk vs. Jfrog |
| Cathay Pacific vs. Singapore Airlines | Cathay Pacific vs. International Consolidated Airlines | Cathay Pacific vs. Air France KLM | Cathay Pacific vs. Qantas Airways Ltd |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |