Correlation Between Workday and Presto Automation
Can any of the company-specific risk be diversified away by investing in both Workday and Presto Automation 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 Presto Automation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Workday and Presto Automation, you can compare the effects of market volatilities on Workday and Presto Automation 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 Presto Automation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Workday and Presto Automation.
Diversification Opportunities for Workday and Presto Automation
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Workday and Presto is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Workday and Presto Automation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Presto Automation 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 Presto Automation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Presto Automation has no effect on the direction of Workday i.e., Workday and Presto Automation go up and down completely randomly.
Pair Corralation between Workday and Presto Automation
If you would invest 23,495 in Workday on August 29, 2024 and sell it today you would earn a total of 3,524 from holding Workday or generate 15.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Workday vs. Presto Automation
Performance |
| Timeline |
| Workday |
| Presto Automation |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Workday and Presto Automation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Workday and Presto Automation
The main advantage of trading using opposite Workday and Presto Automation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Workday position performs unexpectedly, Presto Automation 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 Presto Automation will offset losses from the drop in Presto Automation's long position.| Workday vs. Intuit Inc | Workday vs. Zoom Video Communications | Workday vs. ServiceNow | Workday vs. Snowflake |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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