Correlation Between Aspen Technology and Ceridian HCM
Can any of the company-specific risk be diversified away by investing in both Aspen Technology and Ceridian HCM 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 Aspen Technology and Ceridian HCM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aspen Technology and Ceridian HCM Holding, you can compare the effects of market volatilities on Aspen Technology and Ceridian HCM 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 Aspen Technology with a short position of Ceridian HCM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspen Technology and Ceridian HCM.
Diversification Opportunities for Aspen Technology and Ceridian HCM
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aspen and Ceridian is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Aspen Technology and Ceridian HCM Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ceridian HCM Holding and Aspen Technology 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 Aspen Technology are associated (or correlated) with Ceridian HCM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ceridian HCM Holding has no effect on the direction of Aspen Technology i.e., Aspen Technology and Ceridian HCM go up and down completely randomly.
Pair Corralation between Aspen Technology and Ceridian HCM
If you would invest 23,992 in Aspen Technology on August 29, 2024 and sell it today you would earn a total of 1,048 from holding Aspen Technology or generate 4.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Aspen Technology vs. Ceridian HCM Holding
Performance |
| Timeline |
| Aspen Technology |
| Ceridian HCM Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aspen Technology and Ceridian HCM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aspen Technology and Ceridian HCM
The main advantage of trading using opposite Aspen Technology and Ceridian HCM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspen Technology position performs unexpectedly, Ceridian HCM 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 Ceridian HCM will offset losses from the drop in Ceridian HCM's long position.| Aspen Technology vs. Bentley Systems | Aspen Technology vs. Tyler Technologies | Aspen Technology vs. Blackbaud | Aspen Technology vs. SSC Technologies Holdings |
| Ceridian HCM vs. Paycor HCM | Ceridian HCM vs. Manhattan Associates | Ceridian HCM vs. Paycom Soft | Ceridian HCM vs. Paylocity Holdng |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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