Correlation Between Autodesk and Manhattan Associates
Can any of the company-specific risk be diversified away by investing in both Autodesk and Manhattan Associates 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 Manhattan Associates into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Autodesk and Manhattan Associates, you can compare the effects of market volatilities on Autodesk and Manhattan Associates 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 Manhattan Associates. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autodesk and Manhattan Associates.
Diversification Opportunities for Autodesk and Manhattan Associates
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Autodesk and Manhattan is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Autodesk and Manhattan Associates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manhattan Associates 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 Manhattan Associates. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manhattan Associates has no effect on the direction of Autodesk i.e., Autodesk and Manhattan Associates go up and down completely randomly.
Pair Corralation between Autodesk and Manhattan Associates
Given the investment horizon of 90 days Autodesk is expected to generate 0.52 times more return on investment than Manhattan Associates. However, Autodesk is 1.91 times less risky than Manhattan Associates. It trades about 0.12 of its potential returns per unit of risk. Manhattan Associates is currently generating about -0.04 per unit of risk. If you would invest 25,783 in Autodesk on November 2, 2024 and sell it today you would earn a total of 5,212 from holding Autodesk or generate 20.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Autodesk vs. Manhattan Associates
Performance |
| Timeline |
| Autodesk |
| Manhattan Associates |
Autodesk and Manhattan Associates Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autodesk and Manhattan Associates
The main advantage of trading using opposite Autodesk and Manhattan Associates positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autodesk position performs unexpectedly, Manhattan Associates 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 Manhattan Associates will offset losses from the drop in Manhattan Associates' long position.| Autodesk vs. Intuit Inc | Autodesk vs. Zoom Video Communications | Autodesk vs. Snowflake | Autodesk vs. ServiceNow |
| Manhattan Associates vs. Blackbaud | Manhattan Associates vs. Bentley Systems | Manhattan Associates vs. Paylocity Holdng | Manhattan Associates vs. ANSYS Inc |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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