Correlation Between Presto Automation and Workday
Can any of the company-specific risk be diversified away by investing in both Presto Automation 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 Presto Automation and Workday into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Presto Automation and Workday, you can compare the effects of market volatilities on Presto Automation 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 Presto Automation with a short position of Workday. Check out your portfolio center. Please also check ongoing floating volatility patterns of Presto Automation and Workday.
Diversification Opportunities for Presto Automation and Workday
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Presto and Workday is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Presto Automation and Workday in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Workday and Presto Automation 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 Presto Automation 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 Presto Automation i.e., Presto Automation and Workday go up and down completely randomly.
Pair Corralation between Presto Automation and Workday
Given the investment horizon of 90 days Presto Automation is expected to under-perform the Workday. In addition to that, Presto Automation is 6.92 times more volatile than Workday. It trades about -0.08 of its total potential returns per unit of risk. Workday is currently generating about 0.04 per unit of volatility. If you would invest 20,449 in Workday on August 31, 2024 and sell it today you would earn a total of 4,550 from holding Workday or generate 22.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 79.68% |
| Values | Daily Returns |
Presto Automation vs. Workday
Performance |
| Timeline |
| Presto Automation |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Workday |
Presto Automation and Workday Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Presto Automation and Workday
The main advantage of trading using opposite Presto Automation and Workday positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Presto Automation 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.| Presto Automation vs. CXApp Inc | Presto Automation vs. Bullfrog AI Holdings, | Presto Automation vs. Guardforce AI Co | Presto Automation vs. Dermata Therapeutics |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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