Correlation Between S A P and Ceridian HCM
Can any of the company-specific risk be diversified away by investing in both S A P 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 S A P and Ceridian HCM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SAP SE ADR and Ceridian HCM Holding, you can compare the effects of market volatilities on S A P 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 S A P with a short position of Ceridian HCM. Check out your portfolio center. Please also check ongoing floating volatility patterns of S A P and Ceridian HCM.
Diversification Opportunities for S A P and Ceridian HCM
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SAP and Ceridian is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding SAP SE ADR 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 S A P 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 SAP SE ADR 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 S A P i.e., S A P and Ceridian HCM go up and down completely randomly.
Pair Corralation between S A P and Ceridian HCM
If you would invest 6,842 in Ceridian HCM Holding on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Ceridian HCM Holding or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
SAP SE ADR vs. Ceridian HCM Holding
Performance |
| Timeline |
| SAP SE ADR |
| Ceridian HCM Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
S A P and Ceridian HCM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with S A P and Ceridian HCM
The main advantage of trading using opposite S A P and Ceridian HCM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if S A P 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.The idea behind SAP SE ADR and Ceridian HCM Holding 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.| 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |