Correlation Between Ke Holdings and Autodesk
Can any of the company-specific risk be diversified away by investing in both Ke Holdings and Autodesk 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 Ke Holdings and Autodesk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ke Holdings and Autodesk, you can compare the effects of market volatilities on Ke Holdings and Autodesk 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 Ke Holdings with a short position of Autodesk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ke Holdings and Autodesk.
Diversification Opportunities for Ke Holdings and Autodesk
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BEKE and Autodesk is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Ke Holdings and Autodesk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autodesk and Ke Holdings 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 Ke Holdings are associated (or correlated) with Autodesk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autodesk has no effect on the direction of Ke Holdings i.e., Ke Holdings and Autodesk go up and down completely randomly.
Pair Corralation between Ke Holdings and Autodesk
Given the investment horizon of 90 days Ke Holdings is expected to under-perform the Autodesk. In addition to that, Ke Holdings is 1.37 times more volatile than Autodesk. It trades about -0.21 of its total potential returns per unit of risk. Autodesk is currently generating about 0.04 per unit of volatility. If you would invest 28,762 in Autodesk on September 3, 2024 and sell it today you would earn a total of 428.00 from holding Autodesk or generate 1.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ke Holdings vs. Autodesk
Performance |
| Timeline |
| Ke Holdings |
| Autodesk |
Ke Holdings and Autodesk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ke Holdings and Autodesk
The main advantage of trading using opposite Ke Holdings and Autodesk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ke Holdings position performs unexpectedly, Autodesk 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 Autodesk will offset losses from the drop in Autodesk's long position.| Ke Holdings vs. Marcus Millichap | Ke Holdings vs. Digitalbridge Group | Ke Holdings vs. Jones Lang LaSalle | Ke Holdings vs. CBRE Group Class |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |