Correlation Between Acadia Healthcare and Autodesk

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

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

Diversification Opportunities for Acadia Healthcare and Autodesk

0.17

Correlation Coefficient

Acadia Healthcare  Autodesk

Average diversification

The 3 months correlation between Acadia and Autodesk is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Acadia Healthcare and Autodesk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autodesk and Acadia Healthcare 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 Acadia Healthcare 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 Acadia Healthcare i.e., Acadia Healthcare and Autodesk go up and down completely randomly.

Pair Corralation between Acadia Healthcare and Autodesk

Assuming the 90 days horizon Acadia Healthcare is expected to generate 1.47 times less return on investment than Autodesk. In addition to that, Acadia Healthcare is 1.85 times more volatile than Autodesk. It trades about 0.03 of its total potential returns per unit of risk. Autodesk is currently generating about 0.09 per unit of volatility. If you would invest  23,200  in Autodesk on April 24, 2025 and sell it today you would earn a total of  2,255  from holding Autodesk or generate 9.72% return on investment over 90 days.

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

Acadia Healthcare  vs.  Autodesk

Acadia Healthcare

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Acadia Healthcare are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Acadia Healthcare may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Autodesk

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Autodesk are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Autodesk may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Acadia Healthcare and Autodesk

The main advantage of trading using opposite Acadia Healthcare and Autodesk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acadia Healthcare 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 Acadia Healthcare 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.