Correlation Between Autodesk and Melexis NV
Can any of the company-specific risk be diversified away by investing in both Autodesk and Melexis NV 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 Melexis NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Autodesk and Melexis NV, you can compare the effects of market volatilities on Autodesk and Melexis NV 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 Melexis NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autodesk and Melexis NV.
Diversification Opportunities for Autodesk and Melexis NV
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Autodesk and Melexis is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Autodesk and Melexis NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Melexis NV 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 Melexis NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Melexis NV has no effect on the direction of Autodesk i.e., Autodesk and Melexis NV go up and down completely randomly.
Pair Corralation between Autodesk and Melexis NV
Given the investment horizon of 90 days Autodesk is expected to generate 0.61 times more return on investment than Melexis NV. However, Autodesk is 1.64 times less risky than Melexis NV. It trades about 0.16 of its potential returns per unit of risk. Melexis NV is currently generating about -0.08 per unit of risk. If you would invest 21,082 in Autodesk on September 1, 2024 and sell it today you would earn a total of 8,108 from holding Autodesk or generate 38.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Autodesk vs. Melexis NV
Performance |
| Timeline |
| Autodesk |
| Melexis NV |
Autodesk and Melexis NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autodesk and Melexis NV
The main advantage of trading using opposite Autodesk and Melexis NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autodesk position performs unexpectedly, Melexis NV 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 Melexis NV will offset losses from the drop in Melexis NV's long position.| Autodesk vs. Ke Holdings | Autodesk vs. nCino Inc | Autodesk vs. Kingsoft Cloud Holdings | Autodesk vs. Jfrog |
| Melexis NV vs. Power Integrations | Melexis NV vs. MACOM Technology Solutions | Melexis NV vs. Intchains Group Limited | Melexis NV vs. Vishay Intertechnology |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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