Correlation Between Workday and Fortinet
Can any of the company-specific risk be diversified away by investing in both Workday and Fortinet 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 Workday and Fortinet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Workday and Fortinet, you can compare the effects of market volatilities on Workday and Fortinet 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 Workday with a short position of Fortinet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Workday and Fortinet.
Diversification Opportunities for Workday and Fortinet
Weak diversification
The 3 months correlation between Workday and Fortinet is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Workday and Fortinet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortinet and Workday 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 Workday are associated (or correlated) with Fortinet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortinet has no effect on the direction of Workday i.e., Workday and Fortinet go up and down completely randomly.
Pair Corralation between Workday and Fortinet
Given the investment horizon of 90 days Workday is expected to generate 0.62 times more return on investment than Fortinet. However, Workday is 1.6 times less risky than Fortinet. It trades about 0.03 of its potential returns per unit of risk. Fortinet is currently generating about -0.08 per unit of risk. If you would invest 23,804 in Workday on July 26, 2025 and sell it today you would earn a total of 524.00 from holding Workday or generate 2.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Workday vs. Fortinet
Performance |
| Timeline |
| Workday |
| Fortinet |
Workday and Fortinet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Workday and Fortinet
The main advantage of trading using opposite Workday and Fortinet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Workday position performs unexpectedly, Fortinet 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 Fortinet will offset losses from the drop in Fortinet's long position.The idea behind Workday and Fortinet 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.| Fortinet vs. CoreWeave, Class A | Fortinet vs. Autodesk | Fortinet vs. Workday | Fortinet vs. TE Connectivity |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Stocks Directory Find actively traded stocks across global markets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |