Correlation Between TE Connectivity and Autodesk

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

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

Diversification Opportunities for TE Connectivity and Autodesk

0.53

Correlation Coefficient

TE Connectivity  Autodesk

Very weak diversification

The 3 months correlation between TEL and Autodesk is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding TE Connectivity and Autodesk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autodesk and TE Connectivity 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 TE Connectivity 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 TE Connectivity i.e., TE Connectivity and Autodesk go up and down completely randomly.

Pair Corralation between TE Connectivity and Autodesk

Considering the 90-day investment horizon TE Connectivity is expected to generate 1.09 times more return on investment than Autodesk. However, TE Connectivity is 1.09 times more volatile than Autodesk. It trades about 0.19 of its potential returns per unit of risk. Autodesk is currently generating about 0.02 per unit of risk. If you would invest  17,983  in TE Connectivity on July 22, 2025 and sell it today you would earn a total of  4,315  from holding TE Connectivity or generate 23.99% return on investment over 90 days.

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

TE Connectivity  vs.  Autodesk

TE Connectivity

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in TE Connectivity are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain technical and fundamental indicators, TE Connectivity disclosed solid returns over the last few months and may actually be approaching a breakup point.

Autodesk

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Autodesk are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Autodesk is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with TE Connectivity and Autodesk

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

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..