Correlation Between Superior Plus and Autodesk

Can any of the company-specific risk be diversified away by investing in both Superior Plus 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 Superior Plus and Autodesk into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Superior Plus Corp and Autodesk, you can compare the effects of market volatilities on Superior Plus 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 Superior Plus with a short position of Autodesk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and Autodesk.

Diversification Opportunities for Superior Plus and Autodesk

-0.66

Correlation Coefficient

Superior Plus  Autodesk

Excellent diversification

The 3 months correlation between Superior and Autodesk is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and Autodesk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autodesk and Superior Plus 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 Superior Plus Corp 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 Superior Plus i.e., Superior Plus and Autodesk go up and down completely randomly.

Pair Corralation between Superior Plus and Autodesk

Assuming the 90 days horizon Superior Plus Corp is expected to under-perform the Autodesk. In addition to that, Superior Plus is 1.05 times more volatile than Autodesk. It trades about -0.03 of its total potential returns per unit of risk. Autodesk is currently generating about 0.05 per unit of volatility. If you would invest  18,344  in Autodesk on October 4, 2024 and sell it today you would earn a total of  10,046  from holding Autodesk or generate 54.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Superior Plus Corp  vs.  Autodesk

Superior Plus Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Superior Plus Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Autodesk

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Autodesk are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Autodesk reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Superior Plus and Autodesk

The main advantage of trading using opposite Superior Plus and Autodesk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus 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.

The idea behind Superior Plus Corp and Autodesk pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.