Correlation Between Autodesk and NORDHEALTH

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

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

Diversification Opportunities for Autodesk and NORDHEALTH

0.43

Correlation Coefficient

Autodesk  NORDHEALTH

Very weak diversification

The 3 months correlation between Autodesk and NORDHEALTH is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Autodesk and NORDHEALTH AS NK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NORDHEALTH AS NK and Autodesk 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 Autodesk are associated (or correlated) with NORDHEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NORDHEALTH AS NK has no effect on the direction of Autodesk i.e., Autodesk and NORDHEALTH go up and down completely randomly.

Pair Corralation between Autodesk and NORDHEALTH

Assuming the 90 days horizon Autodesk is expected to generate 1.39 times less return on investment than NORDHEALTH. But when comparing it to its historical volatility, Autodesk is 2.59 times less risky than NORDHEALTH. It trades about 0.08 of its potential returns per unit of risk. NORDHEALTH AS NK is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  298.00  in NORDHEALTH AS NK on April 23, 2025 and sell it today you would earn a total of  18.00  from holding NORDHEALTH AS NK or generate 6.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Autodesk  vs.  NORDHEALTH AS NK

Autodesk

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Autodesk are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Autodesk may actually be approaching a critical reversion point that can send shares even higher in August 2025.

NORDHEALTH AS NK

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in NORDHEALTH AS NK are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, NORDHEALTH may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Autodesk and NORDHEALTH

The main advantage of trading using opposite Autodesk and NORDHEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autodesk position performs unexpectedly, NORDHEALTH 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 NORDHEALTH will offset losses from the drop in NORDHEALTH's long position.

The idea behind Autodesk and NORDHEALTH AS NK 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.

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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.