Correlation Between Autodesk and Golden Star
Can any of the company-specific risk be diversified away by investing in both Autodesk and Golden Star 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 Golden Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Autodesk and Golden Star Resource, you can compare the effects of market volatilities on Autodesk and Golden Star 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 Golden Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autodesk and Golden Star.
Diversification Opportunities for Autodesk and Golden Star
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Autodesk and Golden is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Autodesk and Golden Star Resource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Star Resource 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 Golden Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Star Resource has no effect on the direction of Autodesk i.e., Autodesk and Golden Star go up and down completely randomly.
Pair Corralation between Autodesk and Golden Star
Given the investment horizon of 90 days Autodesk is expected to generate 3.62 times less return on investment than Golden Star. But when comparing it to its historical volatility, Autodesk is 8.14 times less risky than Golden Star. It trades about 0.1 of its potential returns per unit of risk. Golden Star Resource is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 99.00 in Golden Star Resource on August 29, 2024 and sell it today you would earn a total of 16.00 from holding Golden Star Resource or generate 16.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Autodesk vs. Golden Star Resource
Performance |
| Timeline |
| Autodesk |
| Golden Star Resource |
Autodesk and Golden Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autodesk and Golden Star
The main advantage of trading using opposite Autodesk and Golden Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autodesk position performs unexpectedly, Golden Star 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 Golden Star will offset losses from the drop in Golden Star's long position.| Autodesk vs. Intuit Inc | Autodesk vs. Zoom Video Communications | Autodesk vs. Snowflake | Autodesk vs. ServiceNow |
| Golden Star vs. China Aircraft Leasing | Golden Star vs. NetSol Technologies | Golden Star vs. Zhihu Inc ADR | Golden Star vs. Q2 Holdings |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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