Correlation Between Fortinet and Autodesk
Can any of the company-specific risk be diversified away by investing in both Fortinet 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 Fortinet and Autodesk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortinet and Autodesk, you can compare the effects of market volatilities on Fortinet 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 Fortinet with a short position of Autodesk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortinet and Autodesk.
Diversification Opportunities for Fortinet and Autodesk
Good diversification
The 3 months correlation between Fortinet and Autodesk is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Fortinet and Autodesk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autodesk and Fortinet 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 Fortinet 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 Fortinet i.e., Fortinet and Autodesk go up and down completely randomly.
Pair Corralation between Fortinet and Autodesk
Assuming the 90 days horizon Fortinet is expected to generate 0.87 times more return on investment than Autodesk. However, Fortinet is 1.15 times less risky than Autodesk. It trades about -0.32 of its potential returns per unit of risk. Autodesk is currently generating about -0.41 per unit of risk. If you would invest 10,688 in Fortinet on December 11, 2024 and sell it today you would lose (1,326) from holding Fortinet or give up 12.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fortinet vs. Autodesk
Performance |
| Timeline |
| Fortinet |
| Autodesk |
Fortinet and Autodesk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortinet and Autodesk
The main advantage of trading using opposite Fortinet and Autodesk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortinet 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.| Fortinet vs. FLOW TRADERS LTD | Fortinet vs. Tradeweb Markets | Fortinet vs. Indutrade AB | Fortinet vs. Fast Retailing Co |
| Autodesk vs. Uber Technologies | Autodesk vs. BioNTech SE | Autodesk vs. Playtech plc | Autodesk vs. Universal Insurance 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 Stocks Directory module to find actively traded stocks across global markets.
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