Correlation Between AMTD Digital and Workday
Can any of the company-specific risk be diversified away by investing in both AMTD Digital and Workday 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 AMTD Digital and Workday into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMTD Digital and Workday, you can compare the effects of market volatilities on AMTD Digital and Workday 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 AMTD Digital with a short position of Workday. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMTD Digital and Workday.
Diversification Opportunities for AMTD Digital and Workday
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AMTD and Workday is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding AMTD Digital and Workday in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Workday and AMTD Digital 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 AMTD Digital are associated (or correlated) with Workday. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Workday has no effect on the direction of AMTD Digital i.e., AMTD Digital and Workday go up and down completely randomly.
Pair Corralation between AMTD Digital and Workday
Considering the 90-day investment horizon AMTD Digital is expected to generate 1.7 times more return on investment than Workday. However, AMTD Digital is 1.7 times more volatile than Workday. It trades about 0.11 of its potential returns per unit of risk. Workday is currently generating about -0.22 per unit of risk. If you would invest 258.00 in AMTD Digital on October 20, 2024 and sell it today you would earn a total of 13.00 from holding AMTD Digital or generate 5.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMTD Digital vs. Workday
Performance |
| Timeline |
| AMTD Digital |
| Workday |
AMTD Digital and Workday Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMTD Digital and Workday
The main advantage of trading using opposite AMTD Digital and Workday positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMTD Digital position performs unexpectedly, Workday 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 Workday will offset losses from the drop in Workday's long position.| AMTD Digital vs. HeartCore Enterprises | AMTD Digital vs. Beamr Imaging Ltd | AMTD Digital vs. CXApp Inc | AMTD Digital vs. SoundHound AI |
| Workday vs. Intuit Inc | Workday vs. Zoom Video Communications | Workday vs. ServiceNow | Workday vs. Snowflake |
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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