Correlation Between Agora and Autodesk

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

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

Diversification Opportunities for Agora and Autodesk

0.8

Correlation Coefficient

Agora  Autodesk

Very poor diversification

The 3 months correlation between Agora and Autodesk is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Agora Inc and Autodesk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autodesk and Agora 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 Agora Inc 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 Agora i.e., Agora and Autodesk go up and down completely randomly.

Pair Corralation between Agora and Autodesk

Considering the 90-day investment horizon Agora Inc is expected to generate 2.15 times more return on investment than Autodesk. However, Agora is 2.15 times more volatile than Autodesk. It trades about 0.16 of its potential returns per unit of risk. Autodesk is currently generating about 0.12 per unit of risk. If you would invest  293.00  in Agora Inc on April 23, 2025 and sell it today you would earn a total of  105.00  from holding Agora Inc or generate 35.84% return on investment over 90 days.

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

Agora Inc  vs.  Autodesk

Agora Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Agora Inc are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, Agora demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Autodesk

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Autodesk are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile basic indicators, Autodesk may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Agora and Autodesk

The main advantage of trading using opposite Agora and Autodesk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agora 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 Agora Inc 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.