Correlation Between Workday and AMTD Digital
Can any of the company-specific risk be diversified away by investing in both Workday and AMTD Digital 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 Workday and AMTD Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Workday and AMTD Digital, you can compare the effects of market volatilities on Workday and AMTD Digital 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 Workday with a short position of AMTD Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Workday and AMTD Digital.
Diversification Opportunities for Workday and AMTD Digital
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Workday and AMTD is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Workday and AMTD Digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMTD Digital and Workday 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 Workday are associated (or correlated) with AMTD Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMTD Digital has no effect on the direction of Workday i.e., Workday and AMTD Digital go up and down completely randomly.
Pair Corralation between Workday and AMTD Digital
Given the investment horizon of 90 days Workday is expected to generate 0.67 times more return on investment than AMTD Digital. However, Workday is 1.5 times less risky than AMTD Digital. It trades about 0.13 of its potential returns per unit of risk. AMTD Digital is currently generating about -0.26 per unit of risk. If you would invest 25,184 in Workday on November 2, 2024 and sell it today you would earn a total of 823.00 from holding Workday or generate 3.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Workday vs. AMTD Digital
Performance |
| Timeline |
| Workday |
| AMTD Digital |
Workday and AMTD Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Workday and AMTD Digital
The main advantage of trading using opposite Workday and AMTD Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Workday position performs unexpectedly, AMTD Digital 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 AMTD Digital will offset losses from the drop in AMTD Digital's long position.| Workday vs. Intuit Inc | Workday vs. Zoom Video Communications | Workday vs. ServiceNow | Workday vs. Snowflake |
| AMTD Digital vs. HeartCore Enterprises | AMTD Digital vs. Beamr Imaging Ltd | AMTD Digital vs. CXApp Inc | AMTD Digital vs. SoundHound AI |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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